Key Takeaways From Ford's China Auto Sales

GuruFocus.com
0
In this article:

- By Mayank Marwah

Ford Motor (NYSE:F) came out with its August sales in China on Friday, reporting that they declined 36% year-over-year to 62,683 units.

The company's year-to-date sales in China stood at roughly 521,000 units, which reflected a decline of 27%.

Snapshot of the month

Sales at joint venture Changan Ford Automobile (CAF) totaled 34,541 vehicles, reflecting a mammoth 50% sales decline compared to August 2017. Sales during the January-August period were just about 300,000 vehicles, which was down 38% from last year. Jiangling Motor Corp. (JMC) experienced a monthly sales decline of 5% to more than 21,000 units. Year to date sales of JMC were down 5% to approximately 176,000 units.


Sales of Lincoln, in contrast, inched up 13% to 5,312 vehicles. Sales surged a mammoth 120% for Navigator, 56% for Continental and 43% for MKZ. Lincoln sales during the January-August period amounted to more than 34,000 vehicles, which represented 5% sales growth.

Sales of F-150 Raptor increased 474% in the month and were up 118% through August. Mustang sales in August soared 45% to 486 vehicles.

Expansion plans

The company's long-term vision is to introduce more than 50 products in China by the end of 2025; one set to roll out in October this year is the all-new Ford Focus. Peter Fleet, president of Ford Asia Pacific and chairman and CEO of Ford China, said:


"The all-new Ford Focus is the most innovative and dynamic Focus ever. Designed with Chinese customers in mind, it features advanced all-new powertrains, FordPass Connect, SYNC3 systems, and our segment-leading suite of driver-assist technologies, including Co-Pilot 360. We expect the new launches will better meet the needs of our customers in China by delivering more choices tailored to local preferences."



The company promised to bring a variety of products into the Asian market as part of its sales turnaround plan. Besides the introduction of the all-new Lincoln Navigator, the brand's portfolio of SUVs would expand with the introduction of new MKC and all-new Nautilus.

Fleet commented: "Looking forward to the second half of the year, we will continue to bring our strategy to life by further strengthening our relationships with our partners and dealers, providing our customers with more choices and nurturing our local team for a bigger, better and brighter future for Ford in China."

Ford Smart Mobility signed a memorandum of understanding (MOU) with Zotye in May to provide electric vehicle solutions in China's market. Autonomic, a wholly owned subsidiary of Ford Smart Mobility LLC, also signed an MOU with Alibaba Group in August that would bring Transportation Mobility Cloud (TMC) to China.

Disclosure: I do not hold any position in the stock mentioned in this article.

This article first appeared on GuruFocus.


Advertisement

Recommended Stories