Ford CEO Jim Hackett and Ford Chairman Bill Ford announced Tuesday plans to introduce more than 50 new vehicles in China by 2025, including eight all-new SUVs and at least 15 electric vehicles from Ford and Lincoln. In addition, the new Zotye-Ford joint venture is planning to launch a range of affordable all-electric vehicles.
“China is not only the largest car market in the world, it’s also at the heart of electric vehicle and SUV growth and the mobility movement,” Bill Ford said from Shanghai. “The progress we have achieved in China is just the start. We now have a chance to expand our presence in China and deliver even more for customers, our partners and society.”
Ford is planning to locally build five more vehicles in China for Chinese customers starting in 2019, including a Lincoln premium SUV and the company’s first global all-electric small SUV.
“Ford’s new strategy highlights the importance of China in the company’s growth plans,” said Namrita Chow, principal analyst for China at IHS Markit. “So far this year, Ford sales have been falling in China, despite the rise of Lincoln in the country. Its new strategy to significantly ramp up its deliverables to the local consumer base in China comes at a much-needed point for the automaker in China.”
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In October, Ford Motor Co. reported total sales in China of 105,809 vehicles, down 5% from a year earlier. Ford also reported selling 938,570 vehicles in China year to date, also a decrease of 5%.
Jason Luo, chairman and CEO, Ford China, said, “From luxury Lincolns, to Ford cars and SUVs, to an all-new electric vehicle brand, we will meet the growing desire and need in China for great new energy vehicles.”
Ford said it plans to grow its China revenue by 50% by 2025 versus 2017 and is focusing its business expansion on three areas: even more smart, connected vehicles, closer connections to Chinese customers, and a streamlined business structure.
Ford is a founding member of the Board of Baidu’s Project Apollo, building on the agreement signed earlier this year. The Apollo Open Platform accelerates the development, testing and deployment of autonomous vehicles. Ford’s participation supports the company’s robotics and artificial intelligence research efforts and provides an opportunity to contribute to a platform that will be key to developing autonomous vehicles in China.
“We are responding to the rapid pace of change by delivering increased connectivity and working to improve and simplify mobility for everyone,” Hackett said.
Producing vehicles locally speeds time to market, while providing greater opportunities to fully leverage the local supply base, said Peter Fleet, president, Ford Asia Pacific. “Some of our most advanced manufacturing and innovation facilities are here in China.”
Ford last month opened the Nanjing Test Center, which furthers product development capability and innovation in China.
The company has also launched Quick Lane, a global fast, high-quality service provider.
The first two outlets open in Nanjing and Chongqing this month, Ford said, offering routine vehicle maintenance such as oil and filter changes, light repair services including brake repair and tire replacements on all vehicle makes and models. Ford plans to open 100 new outlets next year.
“Ford was a bit late to the feeding frenzy that is the Chinese auto market,” said Dave Sullivan, a product analysis manager at AutoPacific Inc. “Ford has a lot of opportunity in China but they lack the product portfolio and powertrains that bring success in that market — electrification helps. Ford has a lot of catching up to do in China, including more manufacturing to avoid the stiff Chinese tariff.”
Ford says it is strengthening ties with its joint venture partners Changan and Jiangling in 2018, establishing one distribution services division responsible for the marketing, sales and services associated with all Ford vehicles sold in China.
Lincoln, which has become the fastest-growing luxury brand in China, remains a stand-alone consumer-facing brand and maintains its separate dealer network.
“Now is the time to deepen the partnerships we have with Changan and Jiangling groups and present one Ford brand in China,” Fleet said. “All of the actions outlined today reflect an unprecedented commitment to focus on the needs of consumers in China through a more fit and streamlined Ford.”
Contact Phoebe Wall Howard: phoward@freepress.com or 313-222-6512. Follow her on Twitter: @phoebesaid
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