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Ford Kick Starts the Year on a Solid Note
Posted by: Analyse360Degree (IP Logged)
Date: March 10, 2014 01:28AM
Ford (F) had never shown so much of interest in China until in the recent past when the company started registering incredible growth. Volkswagen (VLKAY) and General Motors (GM) have been the biggest foreign auto giants in this emerging nation. In comparison Ford is a tiny player, but it’s sensing tremendous potential in this market where auto sales are estimated to shoot.
According to McKinsey, sales gain is expected to mellow down to 8% a year, and in 2020 China’s car sales are estimated to hit the 22 million mark. This is still higher than any developed economy including the U.S. and Europe. This is precisely why carmakers are concentrating on this growing region and pouring in billions to set up more facilities and augment capacity to cater to the rising demand.
The Blue Oval’s February feat
Almost the entire credit goes to Ford Focus, the top selling nameplate of 2013. Ford Mondeo is also witnessing spectacular response from Chinese buyers. Undoubtedly such solid performance in the first two month is a big boost to the automaker that now expects to sell more than a million vehicles here through the year. This is quite an improvement given the meager scale at which Ford used to earlier operate in the country.
Make hay when the sun shines
Stocks Discussed: F, VLKAY, GM, CHL,