Ford Scrambles to Revive Sales in China

Ford Motor Co. is rushing to reverse marketing miscues and aging products in China to reverse an alarming sales slump, says The Wall Street Journal.

But analysts tell the newspaper that Ford and its new chief in China, Anning Chen, face years of rebuilding in a market whose domestic rivals are becoming far more competitive.

Last year, Ford’s unit sales in China plummeted 37% to 752,200 units from a record 1.27 million units two years earlier. Sales through the first six months of 2019 are down another 27%. Ford’s shrinking volumes over the two periods compare with contractions of 3% and 12%, respectively, for China’s passenger car market overall.

Ford is playing catch-up now after years of missteps, the Journal says. The newspaper cites a rapid turnover of Western executives who never understood the Chinese market, products that failed to keep up with fast-moving consumer demands for innovation, and a rocky relationship with the carmaker’s Changan Automobile Co. partner.

To rally, Ford has opened a vehicle development center in China, marshalled a bevy of fresh models and stepped up plans build more profitable models locally. But the moves come as China’s auto market continues to slump, making sales gains tougher.

At the same time, fundamental differences remain between Ford’s desire to restructure and accelerate new-model debuts with state-owned Changan’s priorities of protecting jobs and bolstering its local economy, a former Ford executive tells the newspaper.