Ford in the Chinese market
In 4Q17, Ford’s Asia-Pacific region revenues rose 11.0% YoY. However, the region contributed negatively. Unfavorable pricing pressure and volume in China garnered ~$279.0 million from Ford’s pretax profits in 4Q17.
On the positive side, Ford’s market share in the Chinese market fell to 4.0% in 4Q17 compared to 4.5% in 4Q16 and 4.2% in 3Q17.
Brand-wise China sales in January
In January 2018, the Chinese vehicle sales (IYK) performance of Ford’s key brands were as follows:
- Ford’s key brand, Changan Ford Automobile, saw its sales significantly decrease 29.0% YoY (year-over-year) to 46,888 vehicle units in January 2018. This was also much lower than Changan Ford brand’s December sales of 102,219 units. In 2017, the total Changan Ford brand sales also fell ~14.0% YoY to 826,740 vehicles.
- The China sales of the JMC brand witnessed positive growth in January 2018 and rose 13.0% YoY to 22,794 vehicle units. In December, about 30,322 units of JMC brand were sold. JMC brand’s Chinese sales increased ~11.0% YoY to 292,942 units in 2017.
- About 5,008 units of Lincoln luxury brand vehicles were sold in China in January 2018, up 7.0%. Lincoln brand’s sales also rose 41.0% YoY in December 2017. With this, the company sold 54,124 vehicle units of the luxury brand in China last year, up ~66.0% YoY.
- In January 2018, China sales of Ford’s imported vehicles—including Mustang, Explorer, and Focus models—fell 36.0% YoY to 1,300 vehicles. Despite drops in the last three consecutive months, the 2017 sales of these imported vehicles were still up 7.0% YoY at 18,819 units.
Among the major automakers, Ford, General Motors (GM), Toyota (TM), and Fiat Chrysler (FCAU) primarily sell their vehicles in the Chinese market through their joint ventures with local Chinese auto companies. This strategy helps these global auto companies to better understand the local consumer base and the country’s market.
In the next part, we’ll look at GM’s China sales in January 2018.