Ford’s advantage in China 0

Ford has gained a large market-share of the truck market over in China. Ford has joined company with Jianling Motors, owning 30 per cent of the company. That way Ford had an easier route into the Chinese market, with greater inside knowledge.
That move has worked a treat as Jianling Motors are set to purchase Changan Automobile, a truck maker based in China. It seems that Ford presence in China will go beyond that of just normal passenger cars, a smart move according to many expert analysts. No financial details of the deal have yet been revealed officially by Ford.

The Chinese Government must first approve the takeover before anything officially goes ahead.
Ford have seen the current trend and taken advantage. China is the dominant force when it comes down to heavy duty trucks. They are the world leaders. The country sold 1 million of them in 2011. That’s more than Europe, South America and North America put together. Although sales may be slowing down slightly this year due to the country’s slowing economy, Ford clearly have confidence in the country picking up sales and the future of the local automotive industry overall.

Their main plant is located in Nanchang city. Ford China only has around 3 per cent of the countries automotive market when it comes down to sales. General Motors and Volkswagen are currently storming ahead.

Dave Schoch, the Chairman and Chief Executive of Ford’s operations in the Far East has stated just how important this piece of news is to the company’s plans. He said “JMC’s acquisition represents a great opportunity to continue to expand the breadth of our business in China across vehicle segments. A strong heavy-truck operation like Taiyuan will complement Ford’s existing passenger car and light commercial vehicle operations here in the world’s largest and fastest-growing vehicle market.”

Jianling Motors make sport utility and light commercial vehicles. They are a major factor in helping China to grow globally. Ford plan to introduce 15 new vehicles to China by 2015 along with 20 advanced powertrains.

Ford are planning to build a $300 million manufacturing facility in Nanchang where JMC are based. An annual capacity of 300,000 is expected. Since Ford entered the market back in 1995, the company have invested a total of $4.9 billion. Expect more from Ford China in the upcoming years