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The company announced Wednesday in a statement that it had appointed industry veteran, Anning Chen, to head its operations in China, where sales have fallen sharply in recent months. The position was vacant since the beginning of the year, when the former chairman and CEO of Ford (F) in China resigned abruptly.
Chen was previously CEO of Chery Automobile, a Chinese state-owned company, and chairman of Chery Jaguar Land Rover, a joint venture with the British automaker. He also worked at Ford earlier in his 25 years career.
Ford has endured a torrid time in China. In September, its sales in the country exceeded 40% compared to the same month of the previous year. In the first three quarters of the year, its total sales in China decreased by almost a third.
"China has never been treated by Ford's head office as a" do or die "market, said Tu Le, founder of the Sino Auto Insights consulting firm.
One of the big problems of Ford in the world's second largest economy is that its range of vehicles in China is old and that drivers lose interest.
The company has not introduced new models to the Chinese market for more than a year and is not expected to do so until the middle of next year, analysts said. Like most foreign automakers, the lion's share of Ford's sales in China comes from a joint venture with a local company.
"Success in China is key to repositioning our global business for long-term success," Ford Chairman Jim Hackett said in a statement released on Wednesday.
Chen will have more weight than his predecessors. Ford said its operations in China would become a standalone business that would report directly to the company's headquarters in Dearborn, Michigan, rather than to the head of the Asia-Pacific region.
This will enable "greater market focus, faster decision-making and increased Chinese leadership in society," he said.
Chinese market becomes ugly
Ford is facing a more pronounced slowdown in the Chinese market, which for years has been a major source of growth for Western automakers.
China is the most important market for some major brands, including General Motors (GM) and Volkswagen (VLKAF). That's a much smaller part of Ford's business: less than a fifth of the company's global vehicle sales came from China last year.
To take a bigger share of the Chinese market, Ford has to quickly increase its production capacity, according to Le, the auto analyst.
"Ford's survival depends on the growth and prosperity of its business in China," he said.
The Chinese market has become much more difficult this year as the economy in general has lost momentum and a trade war with the United States has intensified. Brands such as GM, VW and Jaguar Land Rover have all seen their sales plummet in China in recent months.
Analysts also say that Chinese consumers have been deterred from splashing new cars by the Chinese stock market, rising gas prices and the emergence of new emissions standards next year.
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