Ford’s vehicle sales in China tumble for third consecutive year


SHANGHAI (Reuters) – Ford Motor Co’s (F.N) China vehicle sales fell for a third consecutive year, by 26.1%, as it battles a prolonged overall sales decline in its second-biggest market that has hit demand for its mass-market Ford brand and sports utility vehicles.

FILE PHOTO: A Ford model is seen during the China International Import Expo (CIIE), at the National Exhibition and Convention Center in Shanghai, China November 6, 2018. REUTERS/Aly Song

The U.S. automaker delivered 146,473 vehicles in China in the fourth quarter, down 14.7% year-on-year, Ford said in a statement. In total, it sold 567,854 vehicles over 2019.

Ford has been trying to revive sales in China after its business began slumping in late 2017. Sales sank 37% in 2018, after a 6% decline in 2017.

Anning Chen, president and chief executive of Ford Greater China, said that while 2019 was a “challenging” year for the automaker, it saw its market share in the high-to-premium segment stabilize and its sales decline in the value segment start to narrow in the second-half of the year.

“The pressure from the external environment and downward trend of the industry volume will continue in 2020, and we will put more efforts into strengthening our product lineup with more customer-centric products and customer experiences to mitigate the external pressure and improve dealers’ profitability.”

The automaker plans to launch more than 30 new models in China over the next three years of which over a third will be electric vehicles. It has also said it would localize management teams by hiring more Chinese staff and aimed to improve relationships with joint venture partners.

New models it launched in the fourth quarter include a new Ford Escape version – for which the automaker said orders received so far have been much higher than expected – and the Lincoln Corsair, the first localized Lincoln model in China.

In China, Ford makes cars through a joint venture with Chongqing Changan Automobile Co Ltd (000625.SZ) and Jiangling Motors Corp Ltd (JMC) (000550.SZ). It has also said it would partner Zotye Automobile Co Ltd (000980.SZ) to sell lower priced cars.

Its larger U.S. rival General Motors Co (GM.N) last week said its sales in China fell 15% from a year earlier to 3.09 million vehicles in 2019, its second year of decline.

China’s auto market is set to contract by 2% in 2020 for the third year of decline, the China Association of Automobile Manufacturers (CAAM) forecast, due to a weaker economy and trade dispute with the United States.

Over 28 million vehicles were sold in 2018, down 3% from the prior year, while 2019 sales are likely to have declined 8% from the prior year, CAAM said.

Reporting by Brenda Goh and Yilei Sun; Editing by Christian Schmollinger and Christopher Cushing

Products You May Like

Articles You May Like

Prepare to study in Canada
Study permit: Who can apply
Canada Immigrants Increasingly Likely To Land Jobs And Get Better Pay
Nova Scotia Investing $3m In Settlement Supports For Immigrants 
Calls For Balanced Immigration Policy Despite Canada’s Population Growth
Canada Issues 1,470 Invitations to Apply (ITAs) Under All-Program Draw
Prince Edward Island Announces Immigration Priorities For 2024

Leave a Reply

Your email address will not be published. Required fields are marked *