Ford’s China sales stuck in first gear as rivals overtake

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Ford Motor saw its China vehicle sales make the barest of increases in September, extending a tough run in the world’s largest auto market even as global rivals have logged robust gains.
The U.S. automaker has lacked a high-volume brand of affordable entry cars for China and has been criticized for slow decision-making that has cost it share in a market where consumer tastes change quickly.
In response, it has brought in a new China head, Jason Luo, a Chinese-born American formerly at U.S.-based air bag maker Key Safety Systems, tasked with building closer ties with Ford’s local partners and working more effectively with regulators.
The U.S. carmaker sold 112,902 vehicles in China last month, an increase of some 430 from the same period a year earlier.
By contrast, rivals Toyota, Honda and Nissan Motor saw gains of 14 percent or more while General Motors posted an increase of 7 percent.
Overall vehicles sales in China rose 5.7 percent in September – a fourth straight month of growth.
Like many other global automakers, Ford is also looking to revamp its strategy towards electric vans and cars to keep up with Beijing’s push for cleaner new-energy vehicles (NEV).
The country has set strict quotas for NEVs which carmakers must meet by 2019, a move that is prompting a flurry of electric car deals and new launches of electric and hybrid models. Ford said it was looking to set up an electric car venture with Chinese firm Anhui Zotye Automobile Co in August.
Questions & Answers
Q.What was Ford's sales performance in China last month compared to rivals?
What was Ford's sales performance in China last month compared to rivals?
Ford's China sales increased by only 430 vehicles last month, while rivals Toyota, Honda, and Nissan saw gains of 14 percent or more. General Motors also posted a 7 percent increase.
Q.What is one key reason cited for Ford's struggles in the Chinese market?
What is one key reason cited for Ford's struggles in the Chinese market?
Ford has been criticised for lacking a high-volume brand of affordable entry cars for China and for slow decision-making in a market with rapidly changing consumer tastes.
Q.How is Ford addressing the need for electric vehicles in China?
How is Ford addressing the need for electric vehicles in China?
Ford is looking to set up an electric car venture with Chinese firm Anhui Zotye Automobile Co. This is in response to Beijing's push for cleaner new-energy vehicles and strict NEV quotas.
Q.Who has Ford appointed to lead its operations in China?
Who has Ford appointed to lead its operations in China?
Ford has appointed Jason Luo, a Chinese-born American formerly with Key Safety Systems, as its new China head. He is tasked with building closer ties with local partners and regulators.
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