There was a 30 per cent drop in sale for the United States based car major Ford in the Chinese market for the July-to-September period as the second-biggest market of the company has been witnessing a prolonged period of sale drop on across the sector.
The company had reported a 35.8 per cent drop in sale in the first quarter and a 21.7 per cent in the second quarter in China.
Ford said in a statement that in the third quarter, Dearborn, Michigan-based automaker managed to deliver 131,060 vehicles in China.
While there was a drop of 24.1 per cent in the sale of cars from its luxury division Lincoln, the drop in sale for its mass market Ford brand fared worse at 37.7 per cent in China in the third quarter. According to Reuters calculations, in the first nine months of the year, the company delivered around 421,000 vehicles in the market.
Ever since the slump of its business in China in the late 2017, the company has not been able to revive its sales in the Chinese market. Following a 6 per cent drop in sale in 2017, the company reported a drop of 37 per cent in sale in 2018.
Over the next three years, more than 30 new models are planned to be launched in China by the US automaker. About one third of those new vehicles will be electrically powered. The company has also announced its plans of localizing management teams and hire recruit more Chinese employees along with bettering its relationship with its domestic joint venture partners.
During the third quarter, a series of new models was launched in China by Ford which includes brands such as Focus, sport-utility vehicle models Edge, and electric powered Territory.
Chongqing Changan Automobile and Jiangling Motors are the two domestic Chinese joint venture partners of Ford in China. The company had announced its plans to sell lower-priced cars through a partnership with Zotye Automobile but little progress seems to have been made in that matter.
In August, a new president for its main local venture, Changan Ford, was appointed by Ford as a part of a revamp plan. The company also announced in September of enhancement of its partnership with Changan in the areas of research, production and marketing cooperation. With the aim of localizing its production of its premium brand Lincoln, Ford is also planning to revamp some of its existing manufacturing facilities with Changan.
According to Reuters calculations based on Changan’s filings, there has been a 33.5 per cent drop in Changan Ford’s sales in the third quarter.
In comparison there was a 17.5 per cent drop in sale for Ford’s rival General Motors Co during the July to September quarter at 689,531 vehicles.
According to the China Association of Automobile Manufacturers, in the first eight months of this year, the share of US car companies in the total vehicle in China dropped to 9.5 per cent from 10.7 per cent in the same period a year ago.
(Adapted from CNBC.com)