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Ford’s $11m Restructuring Drive Sees Appointment Of New China Chief


10/28/2018


Ford’s $11m Restructuring Drive Sees Appointment Of New China Chief
Ford has been suffering from a bad patch in terms of sale in the last year or so in the largest car market of the world – China. The company has also not been able to do well globally in recent years.
 
This is the reason that the company has embarked on a plan of a company-wide restructuring program to stage a turnaround.
 
And the company has a social focus on China which became evident after the company pointed a new head for its Chinese business.
 
Even as the company did not do well in the Chinese government, the company has been functioning in the biggest car market of the world without any operating head since January this year. It was at that time that the former executive heading the Chinese operations of the company - Jason Luo, stepped down from the post after just five months into the job. He cited “personal reasons that predate his time with Ford” was cited by him while resigning.  
 
The company said in a statement that the new head of the Chinese business is also a local specialist. Ford has appointed Anning Chen, former chief executive of state-owned Chinese carmaker Chery to head the Chinese operations – which include its new business unit as well as looking after all of the import and joint venture operations of Ford in China.
 
The US car maker would also separate its Chinese business by spinning it out as a standalone company – move which the company says is "designed to accelerate Ford’s return to profitable growth in China". 
 
In recent years, Ford has not been able to perform according to expectations in its foreign markets including chain and in that context, this new appointment is vital. The company has been attempting to turn the fortunes in its foreign markets through a slew of measures – which also includes restructuring throughout the company. There was a drop of 6 per cent in the Chinese business of the company last year despite the fact that there was an overall growth of 3 per cent in the Chinese automotive industry in the same period. Additionally, the company also reported its worst every profit earnings in China since 2001, when it started operations in the country, for the first half of this year. During this period, revenue from sales dropped by a quarter in the Chinese mainland compared to the same period a year ago. 
 
“Success in China is critical as we reposition our global business for long-term success,” said Ford chief executive Jim Hackett in a statement. “With today’s actions, we are strengthening our commitment to the China market and reorganizing our international markets to strengthen their performance.” 
 
It is expected that the Ford chief would have to face tough questions from investors and analysts alike during its third quarter results later this week related to the ongoing $11 billion restructuring program of the company and the dropping share value of the company.
 
(Source:www.ft..com)