Ford reorganizes its operations in China and hires Chery's former CEO as CEO

BEIJING (AP) – Ford Motor Co. has reorganized its operations in Asia and turned its China business into a stand-alone unit by recruiting the head of the local automaker Chery Automobile as general manager.

The company announced on Wednesday that industry veteran, Chen Anning, would replace Jason Luo, who had resigned earlier this year, just months after taking control of Ford in China.

The company is reorganizing after a slowdown due to the slowdown in the Chinese market. The restructuring was aimed at accelerating its return to profitable growth.

"Success in China is key to repositioning our global business for long-term success," said Ford President and CEO Jim Hackett. "With today's shares, we are strengthening our commitment to the Chinese market and reorganizing our international markets to strengthen their performance."

By having a separate business in China, the company intends to act faster and strengthen local leadership in the company.

American-trained, Chen spent the first 17 years of his 25-year career with Ford.

The company is renewing its product line in China and has announced plans to increase local production for the Ford and Lincoln models. He created a joint venture with Zotye on small electric vehicles and entered into alliances with online giants Baidu and Alibaba.

Auto sales in China fell 12% in September from the previous year, a third consecutive month of decline, due to weaker demand and slowing of the economy.

Total sales growth in the first nine months of this year is only 0.6% compared to the same period of 2017.

Weak demand is holding back global automakers, like Ford, who rely on China to generate revenue and spend a lot on developing models that fit local tastes.