Ford on track with accelerated China growth plan

Ford Motor Company, the only major US automaker that didn't receive a government bailout in 2009, has proved its products' popularity in the world's largest growth auto market.

On track to bring 15 new vehicles to China by 2015 as part of its accelerated growth plan, Ford broke its annual sales record in 2014 by selling over 1.1 million vehicles in the market.

Sales for the Ford Escort, a new vehicle designed specifically for Chinese customers, reached 35,000 in the first two months of 2015.

The company has clearly grown rapidly in the past few years.

In 2014, Ford's sales in China grew by 19 percent with 1,114,669 vehicles sold; the yearQ before, sales leapt 49 percent, reaching 935,813 in vehicle sales, up from 626,616 in 2012.

Growing capacity

Meeting rapidly growing customer demand, in November 2014, Ford opened its fifth assembly plant in China and third in Chonqing, making the city its largest manufacturing location outside southeastern Michigan.

Ford is on track to more than double its production capacity in China from 600,000 to more than 1.4 million this year.

With its sixth plant opening in Hangzhou very soon, the automaker is also seeking to expand its presence in eastern China.

Located at the Qianjin Industrial Park, Dajiangdong District, the new plant will contribute to Ford's further growth in China and globally.

The company plans to increase its global sales by 45 to 55 percent to approximately 9.4 million vehicles per year by 2020.

With the launch of the Hangzhou plant, the total annual capacity of Ford's China passenger vehicle joint venture, Changan Ford, will be 1.4 million vehicles.

Ford's aggressive growth plan is also supported by the rapid expansion of its dealer network to more than 850 dealer sales points today.

Aim to lead in luxury

A significant step in the company's further growth in China is the introduction of its luxury brand Lincoln. By introducing the Lincoln MKC and MKZ in October 2014, the company has also made major strides in China's luxury auto market.

In addition to launching the midsize sedan and the premium utility vehicle, the Lincoln brand has evolved to meet the needs of a new generation customers by bringing its innovative retailing experience - the Lincoln Way to China.

Developed through three years of luxury research with an emphasis on the high-end hospitality sector, the Lincoln Way creates lasting relationships through a personally crafted buying experience. Key elements of The Lincoln Way include a distinct, welcoming, homelike retail environment which features a relaxing tearoom as well as state-of-the-art technology.

Lincoln's plans in China are ambitious. Lincoln will open a total of 60 stores in 50 cities in China by 2016. The Lincoln MKZ and Lincoln MKC will be followed by the Lincoln MKX, a mid-size SUV, a full-size sedan, and the Lincoln Navigator, fulfilling the brand's promise to bring five new vehicles to China by 2016.

To the man at the helm, the accelerated China business has played a vital role in the company's global growth.

"There are several aspects where we have the opportunity to further speed up development, said Mark Fields, president and chief executive officer of Ford Motor Company.

"Take sales growth for example: By 2020, our global sales target is 9.4 million vehicles, a 45 percent to 55 percent increase from today.

"It may sound ambitious, but you wouldn' t be surprised if you saw our growth in the past few years and the success of our recently-launched products."

(China Daily 03/23/2015 page6)