Ford attempts to catch up with rivals in China 0

Ford has been reported to be playing catch up amongst rival automakers in China. They are currently in talks to up their dealerships by 50 per cent in China by 2015. A $500 million dollar plant is also in discussion to be built in the country as they attempt to reduce the gap.

Production capacity is also set to increase as we get further into the year. A Ford spokesman has said that production capacity has to increase along with the number of new products being introduced. The retail distribution network must also improve.

Falling behind Volkswagen and General Motors

Ford managed to avoid bankruptcy, as reported on by us, back in 2009. It was a magnificent achievement for them to do so, as the worldwide car market was in great turmoil with many companies need a bailout.

However it would appear that due to their heavy concentration in staying positive and prospering in America, they have fallen to rivals to General Motors and Volkswagen in China. These two have steamed ahead and are currently leading the charts in terms of foreign car makers in the country.

Sales figures clearly represent that. General Motors sold 2.55 million last year from all their related brands. Volkswagen sold 2.26 million. Ford was lagging way behind selling just 320,658 vehicles. This represents a very small percentage from each brand.

New models by 2015

They have already showcased the new Ford Focus in Chongquing, with this model expected to soar in terms of sales this year. Expect the car to hit showrooms by the summer.  Along with this, Ford hope to introduce 15 brand new cars to the country by 2015. This will help the company in half of the current car categories in China. Currently the company only compete in 22 per cent of the Chinese car market.

China is the biggest playing field

If Ford is to become a major worldwide success, they need to concentrate on the Chinese automotive market. Why? Simply because it is the world’s largest automotive industry. They make more car sales than any other country. Although growth has slowed down recently, the industry is still growing year upon year, even if it is by a small amount. Ford are already performing well in the second largest automotive industry, the American car market. If they are to compete with General Motors they need improve in the largest car industry.