Ford in China
In the previous part of this series, we discussed Ford’s (F) sales in China in July. The company’s weaker sales in China have taken a toll on its recent earnings. Before we discuss how weaker sales in China impact Ford’s earnings, let’s take a look at its brand-wise sales in China in July.
Brand-wise sales in July
In July, the Chinese vehicle sales (FXD) for Ford’s key brands were as follows:
- Ford’s key brand, Changan Ford Automobile’s sales decreased 43% YoY to 33,037 vehicle units in July. The sales were slightly lower than Changan Ford’s sales of 33,132 in June. In 2017, the total Changan Ford sales fell ~14% YoY to 826,740 units.
- Last month, the JMC brand’s sales in China fell 5% YoY to 18,711. In June, ~22,806 units of the JMC brand were sold. So far in 2018, the JMC brand’s Chinese sales have fallen 5% YoY.
- About 4,515 units of the Lincoln luxury brand vehicles were sold in China in July—up 2%. The Lincoln brand’s sales rose 12% YoY in June. So far in 2018, the company has sold 28,829 vehicle units of the luxury brand in China—up ~4% YoY.
- In July, Ford’s total imported vehicle sales in China, including the Mustang and Explorer, fell 18% YoY to 1,399 units. July was the ninth consecutive month that Ford’s total imported vehicle sales in China fell YoY.
Mainstream auto companies including Ford, General Motors (GM), Toyota (TM), and Fiat Chrysler (FCAU) mainly sell their vehicles in the Chinese market through their joint ventures with local Chinese auto companies. The strategy helps global auto companies understand the local consumer base and the country’s market.
Next, we’ll discuss how Ford’s weaker sales in China are impacting its earnings in 2018.