Ford Predicts “Bumpy Ride” in China This Year

Ford Motor Co. is rushing to revamp its operations in China after an 18% sales drop in January and the unexpected departure of the CEO of Ford China after just five months on the job.

Peter Fleet, president of Ford Asia Pacific, tells the Detroit Free Press this year will be “a little bit of a bumpy ride” for the company. Fleet says an aging product lineup has hurt sales, noting that new models will be unveiled in April but won’t go on sale until autumn.

In December Ford announced plans to launch production of 50 new models in China by 2025. The array will include more SUVs and a range of electrified vehicles.

Fleet tells FT Ford is trimming its 500-member non-native staff in China by 30%. Many will be replaced by local executives who speak the language and understand China’s culture.

The company also is scrambling to replace Ford China CEO Jason Luo, the Chinese-born former head of Sterling Heights, Mich.-based Key Safety Systems Inc. Luo joined Ford last September but abruptly quit in January for undisclosed personal reasons. Fleet has been filling in for Luo until a replacement can be found.