Ford unveils China's new SUV and wants to boost sales next year

BEIJING (Reuters) – US automaker Ford Motor Co.F.NTuesday unveiled a new SUV in China, and announced that its intention to launch a series of new models would help reverse the sales trend in the world's largest automotive market, as of beginning of next year.

Ford, which is fighting to recover from a sharp drop in sales in China, will start selling the entry-level SUV, called "Territory," early next year. The car is being developed jointly with local partner Jiangling Motors Corp Ltd (JMC) (000550.SZ).

The car, based on JMC's no-frills model, aims to attract consumers from smaller, lower-tier Chinese cities, which have been a major driver of market growth over the last decade. It would compete with local business models like Geely (0175.HK) and Great Wall Motor (601633.SS).

The SUV is one of 50 new or redesigned vehicles that Ford has announced plans to launch in China from this year and up to 2025, which includes the redesigned Ford Focus car that is expected to come out in the showrooms later in 2018.

"All these vehicles – the Ford territory, the Ford Focus and the Ford Escort … they will all start paying their contributions to the retail volume in the first quarter (2019)," Peter Fleet, head of Ford for China and Asia. on a call.

Nevertheless, Ford's new SUV comes on the market at a time when the demand for such cars in small towns in China has begun to cool. Car sales in China recorded the largest decline in nearly seven years in September, due to slower economic growth.

Ford vehicle sales declined 43% in September from the previous year and 30% in the first nine months of 2018 compared to the same period last year. Ford blames its weakness in China for a range of aging models that are waiting for a complete redesign.

Fleet, speaking about the Chinese port city of Qingdao where he was showing the new SUV for the first time, dispelled his concerns about slowing growth in small cities and said 650 local Ford dealerships would contribute to the success of the model. .

"Of course it's still a huge area. With Ford's relatively small market share, it still represents a huge opportunity for Ford, "he said.

He added that the company currently did not see any impact of the fiery trade war between China and the United States, which had seen Ford and Lincoln brands import cars stuck in Chinese ports early in the year.

"We had a slowdown earlier in the year. We do not currently have any of these problems in terms of customs clearance. "