Ford China sales fall 43% with trade war, tariffs and economic slowdown in the United States

Ford's sales in China eased in September due to many factors, ranging from President Donald Trump's trade war to slowing the Chinese economy, hit the company.

According to data released Friday by the company, total sales in China decreased by 43% in September compared to the same month of last year and decreased by 30% in the first nine months of 2018 compared to the same period in 2017.

Sales of each of the company's Chinese partnerships dropped for the month:

• Changan Ford's auto sales were down 55% in September from 2017.
• Sales of Jiangling Motor Corporation decreased by 15%.
• Ford imported sales fell 16% for the month and 15% since the beginning of the year.
• Lincoln is the only brand to post positive sales growth with a gain of 1% for September and 4% since the beginning of the year.

The figures, although more extreme, were in line with the general collapse of Chinese auto sales during the month. According to the China Association of Automobile Manufacturers, sales in this country fell 11.6% from one year to the next in September, the largest decline in seven years.

The collapse in sales of Ford and the Chinese auto market in general is explained by a number of reasons:

• The Chinese economy has slowed in recent months. The International Monetary Fund has canceled forecasts for the country's GDP growth and investments in infrastructure and business have also slowed.
• Another problem is the growing trade war between the United States and China, which could partly be at the root of the slowdown. In particular, cars from both countries are now subject to tariffs, making it more expensive to import cars from the United States to China and vice versa.
• Increasing costs could weigh on sales, Ford warned, and trade-related uncertainty contributed to the company's reduced earnings guidance in July.
• In addition, while overall growth slowed in 2017, car sales in China were strong for the year.

Add up all these elements and you end up with the sales disaster.

The collapse of sales in China is not the only problem related to the trade war for Ford. CEO Jim Hackett revealed that Trump 's decision to impose duties on steel and aluminum entering the United States would cost the company $ 1 billion in 2018 and 2019.

The company also decided not to import a new SUV from China to the United States, citing the trade war as a reason for its decision.

The trade war exacerbates the long-standing problems with the manufacturer, which is already undergoing restructuring. As part of the transition, the company announced Monday that it was going to lay off a significant number of its workforce.