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26% Fall In Ford Sale In China In 2019


01/13/2020


26% Fall In Ford Sale In China In 2019
The sale of cars for Ford Motor Co. in the Chinese market in 2019 dropped by 23 per cent year on year as the company managed to sell less than half of what it had sold in 29016 – its highest selling year in the market. The company further warned that 2020 would be worse for the broader market.
 
Ford said in a statement Monday that it had sold only 567,854 vehicles in the Chinese market last year which was 26.1 per cent lower than what it had achieved a year earlier. Compared to the 36.9 per cent fall in the company’s sale in China in 2018,. It fared better in 2019 but the total number of vehicles that it sold in 2019 was less than half of the 1.27 million figure that the company had clocked in 2016 which was a year of record sale for the company in the market.
 
There was a drop of 14.7 per cent in the sale of Ford in the fourth quarter of 2019 in China. The auto market in China is likely to continue to shrink in 2020, said the Dearborn, Mich.-based car maker.
 
According to Anning Chen, who heads Ford's China business, the company plans to boost its product lineup with "more customer-centric products and customer experiences to mitigate the external pressure and improve dealers' profitability."
 
After growing decades at a stretch, the auto market of China has saw significant contractions primarily because of a slowdown in the general economy of the country cine the past year-and-a-half, with a fall in consumer demand as well as because of stricter emission norms that has hit both auto makers and dealers alike.
 
American brands have been particularly hit by the slump in auto sale in China. And the hardest hit among the US companies are Ford and General Motors Co while a number of local companies have also suffered. IN contrast German and Japanese auto brands have managed to increase their market share at their expense.
 
There was a drop of 15 per cent in the sale of GM in the Chinese market in 2019 which is the highest ever drop in the company’s sale figures in the Chinese market – its largest overseas market. According to the China Association of Automobile Manufacturers, from January through November, American car makers lost 1.5 percentage points of market share.
 
The troubles for Ford in China had started in 2017 which was prior to the broader auto in China being experiencing a contraction which was first seen in July of 2018.
 
Yale Zhang, head of Shanghai-based consulting firm Automotive Foresight, said that main issue for Ford was its outdated product lineup. "For the past two or three years, they didn't launch new products quickly enough and the mainstream models hadn't been updated for years," he said.
 
For example, Ford hasn't updated its midsize Mondeo sedan--known as the Fusion in the U.S.--or about two years.
 
(Source:www.foxbusiness.com)


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