2023-05-08 21:04:26
Ford intends to change its China business with a renewed focus on its commercial business as well as electric vehicles and exports. Speaking recently about the automaker’s plans for China during Ford’s first quarter earnings, chief executive Jim Farley revealed that he would focus primarily on areas of the business that generate the most money.
Farley added that Ford’s joint venture partnership with Jiangling Motors Group shows how the automaker’s Chinese business will move forward. He said Ford will use its Chinese operations as “export hubs” to build affordable electric and commercial vehicles for markets including South America, Australia and Mexico.
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“We’re not going to try to accommodate everyone,” Farley said. “It will be a smaller, leaner investment, much more focused on China.”
As Ford is making changes to the way it operates in China, Farley reiterated the country’s importance to the brand and the auto industry as a whole.
“We believe it’s not only the biggest EV market in the world, but digital customers are ahead of the rest of the world and therefore it’s a very important market for us,” noted Farley. “And what we really see in our presence is battery technology, digital customer experiences and advanced product, software and hardware integration.”
Ford’s biggest Chinese joint venture is with Changan Automobile Co and accounted for 1% of new light vehicle sales in the country last year, down significantly from the 4% share it had in 2016. Auto News notes that sales have dropped in part due to increased competition from local EV manufacturers, as well as the Covid-19 pandemic.
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