Ford Motor Co. F released its second quarter China sales on July 9. Quarterly sales rose on a year-over-year basis thanks to "strong demand following the lifting of COVID-19 pandemic restrictions." In addition, strong sales at the commercial vehicles and luxury segments helped results.
Unlike Ford, Detroit-based automaker General Motors Co. GM, which reported sales on July 3, posted a sales decline of 5.3% to 713,600 units in China.
Overview of the quarter
Ford sold a total of 158,559 vehicles in the second quarter, which reflected a gain of 3% from a year earlier. The quarter also saw roughly 79% sales growth over the first quarter.
Ford brand SUV sales reached 20,462 units, which remained flat compared to the year before, but grew 82.1% as compared to the first quarter. Within the segment, sales of the all-new Escape came in at 11,290 units.
Lincoln luxury vehicles witnessed a sales increase of 12% on a year-over-year basis to 13,896 units, driven by strong performance of the newly launched and locally built Lincoln Corsair, with sales amounting to 6,968 units in the reported quarter.
With the exception of Buick and Wuling, all major General Motors brands posted quarterly declines in China. Wuling and Buick were the best brands in China in terms of volume sold. While the former sold 269,800 units, the latter delivered 213,500 units.
Looking further back
For the past two years, Ford struggled to grow its sales in the world’s hottest car market. The company’s sales slipped 37% in 2018, followed by a 26% decline in 2019. The company cited aging model lineup as the reason for the decline. In addition, the carmaker had cut ties with its joint venture partners and dealers in China.
Fortunately, Ford has reported quarterly sales growth for the region for the first time in nearly three years. To keep the momentum going, the company said it would launch new products and adopt localization strategies.
Disclosure: I do not hold any positions in the stocks mentioned.
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