Ford slides deeper into China rut after worst sales ever

[Assimilator]

It's a really nice family picture but it's going to look completely different in just 1 year. Mustang will be the only sports car remaining.

 

Beyond Mustang, Raptor, and Edge ST we'll have Explorer ST. Escape might get an ST treatment (Kuga definitely is) but it's not on tap for launch as far as I can tell. If the US is getting a Ranger Raptor, it's years away.

Edited July 20, 2018 by Assimilator

[jpd80]

 

Here was the press release:

 

http://performance.ford.com/enthusiasts/media-room/20180/01/ford-edge-st.html

 

 

Thank you, I was hoping someone would post a link and the Ford Performance Family picture.

[fuzzymoomoo]

 

That $1B savings came from cancelling the new Mexico plant. Not because it was cheaper to build them in China and ship them here. It would be cheaper to build them in an existing Mexico factory.

it occurs to me now that I am working in that building now, they still have a perfectly viable assembly plant sitting mostly empty right next door to MAP in the old Wayne Assembly Plant. The vast majority of the building is empty (read: storage/junk that never got recycled). Granted they would have to move the current body sub-Assemblies (perhaps to Dearborn or Woodhaven if theres room for it) and MAP part sequencing out of there but if they need capacity that badly in the future I see no reason why it could not be done. Edited August 14, 2018 by fuzzymoomoo

[bzcat]

Here is a snap shot of sales of mainstream brands in China in the first half of 2018 vs. 2017. Ford is doing... poorly.

 

Rank / Brand / 2018 / 2017

1. VW (FAW VW + SAIC VW) / 1.54 million / 1.47 million

2. Honda (GAC Honda + Dongfeng Honda) / 660k / 574k

3. Toyota (FAW Toyota + GAC Toyota) / 614k / 574k

4. Nissan (Dongfeng Nissan) / 545k / 478k

5. Buick (SAIC GM) / 517k / 552k

6. Hyundai (BAIC Hyundai) / 380k / 301k

7. Chevrolet (SAIC GM) / 328k / 378k

8. Ford (Chang'an Ford + Jiangling Ford) / 230k / 378k

9. Kia (Dongfeng Kia) / 172k / 130k

10. Skoda (SAIC VW) / 168k / 152k

 

VW's 3 mainstream brands (FAW VW, SAIC VW, SAIC Skoda) are outselling Ford 7.5x

GM's 2 mainstream brands are outselling Ford 3.7x

Honda's 2 mainstream brands are outselling Ford 2.9x

Toyota's 2 mainstream brands are outselling Ford 2.7x

Hyundai's 2 mainstream brands are outselling Ford 2.4x

Nissan's 1 mainstream brand is outselling Ford (2 brands) 2.4x

 

The only consolation for Ford is that Mazda fell even more than Ford (from #8 to out of top 10) due to continue infighting between FAW and Chang'an Mazda, and PSA is still a uncompetitive French mess despite having been in China for over 20 years.

 

A couple of things really stand out...

 

- VW is a juggernaut in China.

- GM is doing really well. Even Chevy outsells Ford now, never mind Buick (or Wuling or Baojun, which are not even counted here because they are "budget" brands, not "mainstream")

- Ford's weak partners are really slowing it down in China even without the aging model problem. Note the JV partners of the top brands... none of them are with Chang'an. And Jiangling is so tiny it's basically irrelevant.

- Hyundai and Nissan have caught Ford napping and lapped it.

Edited August 14, 2018 by bzcat

[bzcat]

Here is a snap shot of sales of budget brands in China in the first half of 2018 vs. 2017. Ford is doing... poorly.

 

Rank / Brand / 2018 / 2017

1. Geely / 720k / 531k

2. Baojun (SAIC Wuling GM) / 471k / 399k

3. Chang'an / 378k / 354k

4. Haval (Greatwall) / 325k / 395k

5. Trumpchi (GAC) / 262k / 251k

6. Roewe (SAIC) / 241k / 172k

7. BYD / 221k / 176k

8. Chery / 208k / 202k

9. Zoyte / 146k / 106k

10. Fenguan (Dongfeng) / 125k / 137k

 

GM is alone among foreign companies that has a really strong budget brand in China. Ford's Yusheng is not even a blip on the radar.

 

Another thing that stands out is that aside from GM's Baojun, all the budget brands are Chinese, and most of them are growing sales rapidly. Ford sold fewer cars (230k) this year to date than Roewe (241k) and barely more than BYD (221k). That's the size of the Ford brands (two of them) in China right now... bleak and in free fall. Ford took a nap for 3 years while everyone else just kept going rolling out new models.

Edited August 14, 2018 by bzcat

[Kev-Mo]

Given China's 75 year grudge with Japan, and current Geo Political tensions with Japan that makes it even worse, when 3 Japanese brands are spanking you in China, you are certainly doing poorly.

[jpd80]

More and more Chinese buyers are just purchasing their vehicles with other brands with new, fresh products.

I really hope that this underscores to the brass the need to keep products fresh and not think cheap by mailing it in.

[jasonj80]

Given China's 75 year grudge with Japan, and current Geo Political tensions with Japan that makes it even worse, when 3 Japanese brands are spanking you in China, you are certainly doing poorly.

Going to be interesting in the coming months how GM fairs though I think Ford is going to get the brunt of the backlash with US tensions currently.

[bzcat]

GM will be just fine in China. 2 of its 5 brands in China (Baojun and Wuling) are viewed by Chinese consumers as entirely domestic and Buick has the highest positive image among foreign mainstream market brands.

 

GM sales are flat in China mainly because it is still rolling out CUVs. Neither Chevy nor Buick has a midsize (vs. Edge, Highlander, Sorento, etc) and the subcompact Trax and Encore are nearing end of life. Compact segment is ultra competitive and Equinox is a new nameplate in China so sales are slowing ramping up but Envision dominates the segment that Kuga is treading water in.

 

The big difference between GM and Ford is that GM is planning to introduce 4 new model in late 2018 so GM sales will probably go up for the whole year of 2018. Ford has no new models in 2018... other than imported Ranger, which will only sell a handful.

Edited August 16, 2018 by bzcat

[7Mary3]

The Chinese affinity for Buick seems so strange, but there is a lot of history behind it.