Ford Motor Co. (F, Financial) reported a 38% sales decline in China for the month of June, selling 62,057 vehicles. In the first half of the year, sales amounted to 400,443 units, which represents a decline of 25% from the prior-year period.
Bird’s-eye view
June sales for Changan Ford Automobile plummeted 53% year over year to approximately 33,000 units. On the other hand, Jiangling Motor sales witnessed a 7% sales drop to 22,806 units during the same period.
Peter Fleet, president of Ford Asia Pacific and chairman and CEO of Ford China, commented on the company's performance.
“We always knew it would be a challenging year for us given our position in the product cycle; however, we are intensely focused on our ‘In China, For China’ strategy,” he said. “As we reposition our business in the market, we are working closely with our partners to strengthen our core business, improve our operational fitness and capitalize on emerging market opportunities.”
Lincoln sales in June inched up 12% to roughly 4,400 units. Sales in the first half of the year soared 4% to more than 24,000 units. The company attributed strong MKZ sales in June (up 25%) and robust sedan sales in the first half of the year (up 12%) to the brand's growth in China.
In addition, the Ford F-150 Raptor saw mammoth monthly sales growth of 180%.
Other details
In May, Ford entered into a joint venture program and also signed a memorandum of understanding with Zotye, a privately owned Chinese car manufacturer, to provide electric vehicles in China. In June, the company signed a letter of intent with Baidu (BIDU) to work on artificial intelligence, connectivity and digital marketing to augment customer experience.
Keeping the China 2025 plan in mind, the company plans to bring more vehicles to the Chinese market this year, including the all-new Focus and new Escort. Additionally, the Michigan-based automaker will expand its SUV portfolio through the introduction of the new MKC and the all-new Nautilus.
Last word
Despite the June sales decline, Fleet has a positive attitude for the year:
“Looking forward to the second half of the year, we will continue to bring our strategy to life by further strengthening our relationships with our partners and dealers, providing our customers with more choices and nurturing our local team for a bigger, better and brighter future for Ford in China,” he said.
Disclosure: I do not hold any positions in the stocks mentioned in this article.
