Ford Motor Co. (F, Financial), the second-largest automaker in the U.S., reported Chinese auto sales for July on Friday.
The company delivered a total of 57,662 vehicles in China, down 32% year over year. Unsurprisingly, the company’s continued poor performance in the world’s largest car market was due to a lack of fresh and redesigned models.
The company’s year-to-date sales came in at 458,105 vehicles, reflecting a sales decline of 26% from the same period a year ago. In addition, the company projects sales will continue to decline for the remainder of the year and possibly through early 2019 as a result of the lack of new car models.
Snapshot of the month
Sales at joint venture Changan Ford Automobile (CAF) amounted to more than 33,000 units in July, down 43% on a year-over-year basis. Sales during the January to July period were down 37% to 265,000 vehicles. While monthly sales for Jiangling Motor Corp. (JMC) slipped 5% to roughly 19,000 vehicles, its year-to-date sales also fell 5% to approximately 1,555,000 vehicles.
In contrast, Lincoln’s sales in July improved 2% to more than 4,500 units. Sales for the January to July period were up 4% to almost 29,000 units.
What’s next for Ford?
As part of its revival efforts in China, the company announced its plans to introduce a midsized SUV in China called "Territory," which is meant for customers who like spacious cars at a reasonable cost.
The company hopes to roll out 50 new and redesigned vehicles in China by the end of 2025. As part of this plan, the company will introduce redesigned Focus and Escort models in the coming months.
About China auto sales
Chinese car sales in July dropped 4% to 1.89 million vehicles. The sales decline was attribued to the mounting trade tensions between China and the United States. In fact, Chinese officials recently slapped a 25% tariff on U.S. imports, including some cars.
Year to date, China auto sales amount to 16 million vehicles, up 4.3% from last year.Â
The Chinese auto market is expected to grow 3% this year.
Disclosure: I do not hold any positions in the stocks mentioned in this article.
