Ford Motor (F, Financial), along with its joint ventures in China, surpassed the 1 million units mark in the first 11 months of the year. Sales for November stood at a record 124,113 vehicles, up 17% year over year. The sales gain was powered by a strong performance from the Blue Oval’s SUV lineup, Edge and Explorer. The company sold more than 1 million vehicles this year at a quicker pace than it did last year. Ford is on track to finish the year on a solid note and is well-positioned to register record sales numbers.
Peter Fleet, vice president of marketing, sales and service for the Asia Pacific, was very optimistic when he said, “Ford is gaining more momentum in China each month and we are on pace for a record year in China.” He added, “We are seeing increasing demand across our lineup, particularly our full family of SUVs.”
Ford continues to shine bright in China
Ford operates through two joint ventures in China, Changan Ford and Jiangling Motors Corp. Changan manufactures a variety of Ford cars and SUVs taken primarily from the Blue Oval’s global product portfolio. Jiangling makes the company’s SUVs, pickups and transit vans. In addition to its operations through the two joint ventures, Ford sells some imported vehicles in China.
Changan Ford Automobile recorded a solid performance for the month of November. Sales spiked 14% to 96,000 vehicles for the month. As far as the year-to-date sales of the passenger car joint venture is concerned, sales surged 14% to 842,000 units.
Ford’s commercial vehicle investment, Jiangling Motors Co., witnessed 29% sales improvement to 26,285 vehicles sold. This is compared with 20,310 units sold in the same period last year. Jiangling sales stood at 232,000 units, up 5% for the 11-month period.
Sales of the company’s SUVs were stunning, with Explorer and Edge increasing 73% and 21% respectively. Ford Focus and Encore also made significant contributions, up 28% and 50%. The Mustang witnessed a sales increase of 48%. Ford’s imported vehicle sales in China improved 2.5% to 1,637 units.
The crossover, SUV and small sedans segment is thriving in China. Ford has been focusing on these segments to gain traction in the economy. With strong sales figures across all brands, Ford’s total sales in the Chinese market stood at 1,090,024 units, up 10.7% as compared with the same period last year.
Going forward
Ford announced in October of last year its plan to invest $1.8 billion towards research and development in China over the next five years. The company is primarily going to invest in revamping its models and introducing fresh designs to suit the preferences of the Chinese population. The American automaker has also disclosed its plans to invest in exploring smartphone connectivity, developing autonomous driving and researching other smart-car technologies during this period.
Over the past few years, Ford has made an effort to enhance its offerings in terms of the variety of models made available in China. This has resulted in the company developing significant market presence and gaining market share. The company proposes to introduce more hybrids, plug-in hybrids and electric cars considering China’s push towards lowering pollution. The Michigan-based automaker’s prospects in the country look bright given its current portfolio and plans for the future. Stay tuned for December results.
Disclosure: I do not hold any position in the stock mentioned in this article.
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