Why Ford is still obsessed in China – The Motley Fool

Kuga's sales, the Chinese version of the Escape, have dropped more than half in the last three years. Source: Ford Motor Company

Crude Figures

For a quick glimpse, Ford reports four categories of sales in China:

• Ford brand passenger vehicles produced by its joint venture with Chinese automaker Changan Automobile. The joint venture is called Changan Ford (CAF).
• Trucks and commercial vehicles manufactured in collaboration with another Chinese car manufacturer, Jiangling Motors (JMC). These trucks include three Ford models as well as several others sold under the Yusheng and JMC brands.
• Ford brand vehicles imported into China. These include the Mustang, the Explorer, the F-150 Raptor, and the performance versions (ST and RS) of the Focus
• Lincoln brand vehicles, all of which are currently imported to China. half of the year, only Lincoln posted an increase in sales:

  Category	Sales of June 2018	Change from June 2018	Sales of H1 2018	Variation by compared to H1 2017
  CAF [19659020] 33,132	(53%)	232,320	(35%)
  JMC	22,806	(7%)	135,961 [19659019] (5%)
  Lincoln	4,350	12%	24,314	4%
  Imported Ford vehicles	1,769	(1%)	7,848 [19659019] (20%)
  TOTAL	62,307	(38%)	400,443	(25%)

  Source Data Found: Ford Motor Company

  Why Ford Sales are they down?

  The Chinese new car market is fierce. Almost every global automaker you've heard of doing business in China, alongside a large number of Chinese automakers that go from small start-ups to large companies with their own global ambitions. The thing to know is that the number of competing companies in the market means that Chinese customers almost always have fresh new products to choose from – no matter what type of vehicle they're looking to buy.

  have managed to maintain success in China are those who stay in step with the market, introducing new models and variants quite frequently to maintain consumer engagement. This includes GM, which has recently seen good sales growth at both ends of the Chinese new car market.

  Ford's problem, simply, is that he did not do that. For example, just three years ago, sales of the Ford Kuga – the Chinese version of the Escape – thrived on China's strong demand for high-quality compact SUVs. Ford sold 65,767 Kugas in the first half of 2015 and, at the time, was hoping to continue growing. However, three years later, Ford sold only 25,155 Kugas in the first half of 2018, a decrease of 62%

  . This story has been repeated time and time again in Ford 's lineup. Even though the Kuga was the subject of a facelift it was not long ago, Chinese customers now seem to see it – and other Ford – as old news.

  Ford is preparing a series of new products for China

  "We plan to abandon China, despite the sharp drop in sales."

  "We have always known that it would be a difficult year for us considering our position in the production cycle, but we are intensely focused on, for China's strategy, Ford China's leader, Peter Fleet said in a statement, "By repositioning our business in the market, we are working closely with our partners to strengthen our core business, improve our operational form and take advantage of emerging market opportunities."

  The Plan Ford's "China 2025" Expects 50 News The first two models, the redesigned 2018 Mustang and an off-road version of the Ranger Wildtrak pickup, have already been launched in China, and will be followed later this year by two upgraded Lincoln SUVs. and all-new versions of two of Ford's biggest sellers: the Focus, and a low-cost compact in China, called the Escort

  . There will probably be more new products, and more time, for Ford to regain the same level of sales as it did a few years ago in China. Ford shareholders should be prepared for the likelihood that it 's a long – term project.