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Ford Gears Up Its Target in China

March 21, 2014 | About:
abirk

abirk

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Ford Motor Company (F) is one of the first American automotive companies that even today successfully manufactures and sells automobiles, trucks, buses and automotive parts. Ford is the second largest U.S. automaker and the fifth largest vehicle seller in Europe and the world, based on 2010 vehicle sales.

Ford is a producer of cars and trucks. The company also engages in other businesses, such as financing vehicles. Ford operates in two sectors: automotive and financial services. Through its sectors, Ford provides a wide range of vehicles, vehicle parts and services to a multitude of consumers and companies worldwide. It is now revolutionizing its vehicles in order to compete on the world stage.

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 180,000 employees and 65 plants worldwide, the company’s automotive brands include Ford and Lincoln. The company provides financial services through Ford Motor Credit Company.

Ford Expects Sustainable Growth in China

Ford expects sustainable growth moving forward in China. To keep up with market demand, Ford together with its partners currently added four new plants in China. For much of the past decade Ford has trailed Japan's big car makers, but a line-up of new and revamped vehicles, including the top-selling Focus, and a China-Japan territorial spat helped the U.S. company in 2013.

Ford is building 14 new factories as part of a global expansion that began in 2011 in countries like China and India. A new plant in the eastern city of Hangzhou that cost $760 million will have the capacity to build 250,000 vehicles annually and will open next year. Ford expects that its Chinese production capacity around that time will reach 1.2 million passenger cars, double the level of 2012.

Record High Sales in China

Continued strong demand for the Ford Focus, the best-selling nameplate in China last year, helped Ford China increase sales by 67% in February, with 73,040 vehicles sold. Ford China’s sales are up 59% so far for the year, with sales of 167,506 vehicles compared to the first two months of 2013.

Continued strong demand for the Ford Focus, the best-selling nameplate in China last year, helped Ford China increase sales by 67% in February, with 73,040 vehicles sold. Ford China’s sales are up 59% so far for the year, with sales of 167,506 vehicles compared to the first two months of 2013.

Ford's commercial vehicle investment in China, Jiangling Motors Corporation (JMC), has also gained momentum with steady growth. February's sales increased by 22% and reached 16,756 vehicles compared to 13,684 vehicles in February of 2013.

Growth Plans in 2014

The year 2014 is expected to be another solid year for Ford and a critical building block in the One Ford Plan as Ford moves forward in building stronger global brands, a growing business based on outstanding products and a better balanced business in terms of source of sales and profitability. This is supported by a strengthening balance sheet that will continue to enable the company to reward shareholders with attractive returns.

In 2014, Ford will embark on its most aggressive product launch schedule in its history. The company will launch 23 all-new or significantly refreshed vehicles around the world — more than double the 11 global vehicle launches in 2013.

Overall, 2014 represents the next step in delivering profitable growth for all, with total company pre-tax profit, excluding special items, projected at $7 billion to $8 billion.

To End

China is the world's largest and fastest growing auto market. As per a recent study conducted by the KPMG, the Chinese market will continue to expand considerably and it is expected to account for 30% of global automotive sales by 2020 alone. The company is very keen on benefiting from this market and the management of the company expects that they would sell one million units in China by the end of 2014

Ford owners are among the most loyal of all car owners, according to Consumer Reports data. Some 56% of Ford owners are likely to buy another one. Ford has certainly been performing well as a company over the past few years — making good vehicles, being consistently profitable, recently reinstating its dividend, and doing a remarkable job paying down its debt.

Ford's F-150 is the best-selling vehicle in the country, and its new initiatives designed to generate greater fuel efficiency will only improve its standing in the near future. Ford simply dominates the pickup truck market, and its international operations are back on track. It will surely reap good returns to its valued shareholders.


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