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  Topic Review (Newest First)
05-09-2018 11:19 PM
Re: Fomoco China 2018...

Ford's cars being held up in Chinese ports in trade tensions with U.S.
‘Customs pretends there are technical non-conformities of some nature’
- Norihiko Shirouzu & Michael Martina - May 9th 2018

BEIJING — Ford Motor Co's imported vehicles are being held up at Chinese ports, three people with knowledge of the matter told Reuters, underscoring how U.S. goods are facing increased customs scrutiny in China amid a tense trade standoff.

The three people said Ford and Lincoln vehicles were facing unusual delays at customs, with officials asking for extra technical checks. Two of the people said U.S.-made models of some German carmakers, mainly SUVs, being brought into China, were also affected.

Ford was being asked to do extra checks on emission components, said a China-based Ford executive familiar with the matter, asking not be named because of the sensitivity of the issue.

China's customs agency did not immediately respond to requests for comment.

The holdups add to a growing list of American products facing issues at China's borders, as officials try to avert a full-blown trade war. Some trade experts said they believe Beijing is sending a defiant warning to Washington in response to sweeping U.S. trade demands made on China last week.

Reuters reported Tuesday that China had ramped up inspections of pork shipped from the United States, after the country's customs agency said it would step up quarantine checks on American apples and logs.

The second person, a China-based industry official with knowledge of the matter, said the delays for Ford — as well as some U.S.-made cars from BMW and Mercedes-Benz — had been going on for the last two weeks.

"Customs pretends there are technical non-conformities of some nature that won't allow them to clear these U.S.-made cars through customs, but the U.S.-China trade frictions must be the background to this," he said. "Although no one will officially admit it."

Responding to a request for comment from Reuters, a BMW spokesman said that "U.S.-made BMW cars have not been delayed at the ports as of last week and before."

A Daimler spokeswoman said it was "monitoring the situation closely" regarding ongoing trade talks between China and the United States, but that she could not speculate further on other matters.

The third person said the Ford issue, which had been noted by the United States government, and other holdups facing American goods, were clearly related to the trade dispute.

A Ford spokeswoman in Shanghai when asked about the matter said: "We are closely monitoring our situation at the port." She declined to comment further. Imported Ford cars normally enter China via the eastern ports of Shanghai and Tianjin, she said.

Japanese and German carmakers that Reuters spoke with said they were not facing similar delays at China customs with imported vehicles made outside the United States.

It wasn't immediately clear if General Motors cars imported to China from the United States were being impacted by the delays. GM plans to import only a total of about 150 vehicles to China from North America this year.

"Virtually all products we sell in China are built in China," said a Shanghai-based GM spokesperson.

U.S. President Donald Trump has threatened tariffs on up to $150 billion of Chinese goods. The United States alleges that Beijing misappropriates U.S. technology through joint-venture requirements, unfair licensing practices, outright theft and state-backed acquisitions of American technology firms.

Beijing denies those accusations.

China's top economic official, Liu He, will visit Washington next week to resume trade talks, the White House said Monday, after a U.S. delegation led by Treasury Secretary Steven Mnuchin came away from a visit to Beijing last week with no agreement over a long list of U.S. trade demands.

China is the world's largest auto market but has been the focus of criticism from Trump over a 25 percent import tariff and foreign ownership caps on local auto ventures. China has pledged to remove the ownership limits and lower import levies.

Ford has much to lose if the war of words over trade between China and Trump escalates into a full-blown tariff war. Last year, it shipped about 80,000 vehicles to China from North America, more than half of them Lincolns — including the Lincoln Continental sedan and the Lincoln MKX crossover SUV.

All Lincoln vehicles that Ford now sells in China are brought in from North America. Last year the brand sold 54,124 vehicles in China, the world's largest auto market, up 66 percent from 2016.

James Chao, Shanghai-based Asia-Pacific head of the IHS Markit consultancy, said delays of a few weeks would not likely cause sales disruptions since automakers keep on average 60 days of inventory. Longer delays, though, could have a bigger impact.

Julia Coym, a Shanghai-based senior analyst at the consultancy Control Risks, said the move was as much about sending a message to the White House as directly hurting Ford.

"China has started using these types of tools pressuring companies over political or trade disputes a lot more in the last couple of years," Coym said. She called the increased customs checks China's "intense quarantine method".

She pointed to a political standoff last year between China and South Korea. South Korean firms who relied on Chinese consumers in sectors from retail to tourism were hit by increased inspections and a ban on tour group travel.

"This is part of China's play-book now," said Coym. "We would definitely expect to see more of this as the trade dispute intensifies further," she added, referring to the U.S.-China standoff.

05-03-2018 03:16 PM
Re: Fomoco China 2018...

touching on just about EVERY Hot Topic:
new Platforms, electrifrying, mobility-instead-of-owning, tariffs, even autonoy

Ford to launch new all-electric vehicles for ride-hailing services in China
- Fred Lambert- May. 2nd 2018

China is getting all the good stuff when it comes to all-electric vehicles these days.

Now, Ford is setting up a new joint-venture to sell all-electric vehicles for ride-hailing services in the country.

Ford’s offering is extremely limited when it comes to all-electric vehicles, but it has been making a lot of announcements about them.

In the US, it should start to materialize into actual products starting in 2020 and in China, it will mean dozens of new vehicles.

Last year, they set up a new joint-venture with Anhui Zotye Automobile Co to launch a new brand for EVs in the country on top of plans to launch 15 new EVs under its own current brands in China.

Now, they are adding to those electrification plans by setting up another joint-venture with Zotye.

The new company will offer “a range of stylish and affordable all-electric vehicles under a new indigenous brand” that will be focused on “customized all-electric vehicle solutions to fleet operators and drivers in China’s fast-growing ride-hailing market.”

Fast-growing indeed. According to Boston Consulting Group, the local ride-hailing market will grow by 19 percent annually through 2022, with an overall fleet size potentially reaching up to 26 million units.

Didi, the leader in ride-hailing in China, already claims to be the ‘world’s largest EV fleet operator’ with 260,000 EVs and plans to reach a million by the end of the decade.

Ford’s new venture plans to offer “all-electric vehicle leasing services, data-driven fleet management solutions, in-vehicle digital services, connectivity and vehicle customization,” in order to help achieve that goal as well as the electrification of other ride-hailing services.

The American automaker and Zotye have signed a memorandum of understanding (MOU) to establish a joint venture and they will be investing US$20 million to get it started.

They haven’t released a timeline for bringing those new EVs to market.

Electrek’s Take
I think using electric vehicles in ride-hailing services is a smart way to deploy more electric vehicles.

Chevy is doing this with the Bolt EV through GM’s Maven Gig service now with hundreds of Bolt EVs available for Lyft and Uber drivers in the US.

We also recently reported on Youngo, a Paris-based ride-hailing service using exclusively electric vehicles.

I think we are going to see more of these services going electric in the coming years – leading to the ‘holy grail’ of personal mobility: ride-hailing with all-electric and autonomous vehicles.

Featured Image (left to right): Chen Jing, vice president of Zotye Auto; Jin Zheyong, chairman of Zotye Auto; Marcy Klevorn, executive vice president and president of mobility, Ford Motor Company; Peter Fleet, Ford group vice president and president, Ford Asia Pacific.
04-30-2018 09:18 PM
Re: Fomoco China 2018...

Ford China Takes Important Steps Toward Strengthening Its Position
- Aaron Brzozowski - APR 25, 2018

Ford China today announced the completion of some very important steps to streamlining and improving sales in the country, which is the world’s largest auto market. These include the establishment of a single, nationwide distribution network and the hiring of two new executives in key roles.

Until now, purchasing a Ford in the Chinese market could be a complicated matter, as the automaker operates multiple joint ventures in the country, each of which had its own dealer network. That changes with the new Ford National Distribution Services Division, which enables Ford to sell its full lineup of vehicles at each and every dealership in the country, regardless of where it was built or which joint venture it originated from. The new distribution division will also allow Ford to become more fit by reducing duplication of efforts and driving greater efficiency, while improving the customer experience.

At the same time, Ford China is “reshaping [its] business… and adding new talent that will help us compete and win now and in the future in the world’s largest auto market,” Ford Motor Company President and CEO Jim Hackett said in a release. The automaker announced that it is appointing Henry Li to the role of Vice President of Marketing and Sales in Greater China, effective May 7th, where he’ll lead Ford’s transition to the National Distribution Services Division in China. Meanwhile, Richard Chen will be made Vice President of Strategy and Partnerships in Greater China effective May 16th, in which role he’ll be responsible for Ford’s overall business strategic planning in the Chinese market, and the management of external partnerships.

Henry Li, 50, comes from Beijing Mercedes-Benz Sales Service Company, where he helped make China the single largest global market for the German automaker. Largely thanks to his leadership, Mercedes experienced 59 consecutive months of year-over-year sales growth in China. Li has 26 years of experience in auto marketing and sales.

Richard Chen, 49, formerly served as Vice President, Managing Director, and Board Director for Yangfeng KSS Automotive Safety Systems – Key Safety Systems’ Chinese-market joint venture with Yangfeng Automotive Trim Systems Company. He was responsible for the company’s sales, technology center, and four manufacturing plants. Prior to working with Key Safety Systems’ Chinese business unit, he held multiple positions with Magna Powertrain Asia Pacific and Chrysler North America.

“The addition of Henry Li and Richard Chen, two proven executives with deep experience in China, will help us accelerate our China 2025 growth plan and connect with customers in new ways,” says Ford Asia Pacific President Peter Fleet. “Henry will play a significant role in launching a single distribution channel for all Ford products and services in China, delivering improvements for marketing effectiveness, as well as operational efficiencies, with considerable benefits to our brand, partners, dealers and customers. Richard will advance our ‘In China, For China’ vision as he leads overall business strategic planning and management of external partnerships.”
03-12-2018 12:47 PM
Re: Fomoco China 2018...

It always seems like big things are ahead but does it ever seem like it really gets here? We can hear product counts for years and years and those product onslaughts never seem to arrive.
03-12-2018 08:56 AM
falcon lover
Re: Fomoco China 2018...

China is a disaster, too.
03-11-2018 01:41 AM
Re: Fomoco China 2018...

Ford needs to act and adapt faster.

In most of Asia-Pacific, Ford is relying heavily on the Ranger to keep them alive (with a little help from the Everest SUV and EcoSport to boost overall sales numbers in some Southeast Asian markets).

New "car" plans seem to have been placed on the backburner.
For those unfamiliar with the Southeast Asian market, the other popular segment besides pickups and SUVs are subcompact sedans.
03-10-2018 11:22 PM
Re: Fomoco China 2018...

"The key is, they’re not replacing an existing car. They’re likely looking for the newest, most exciting product. In China, you get a big uptick with a new product. And if you don’t have new product, you pay a little bit of a price for that.”

This is the case in the US as well. A refresh or new trim levels does not equate to a NOT a new vehicle, contrary to what Ford thinks. It seems Ford is learning this the hard way.
03-10-2018 10:18 PM
Re: Fomoco China 2018... | 2018-3-9 | Shanghai, China
page 2 of .Pdf (784kb)

Overall Ford Motor Company China sales totaled 47,483 vehicles in February, a 30 percent decline year over year. Key points include:0
• The year-to-date sales for Ford Motor Company in China totaled more than 123,000 units, a 23 percent decrease year over year.
• Monthly sales for Changan Ford Automobile (CAF) totaled more than 31,000 vehicles, down 27 percent compared to February last year.
• The year-to-date sales for CAF totaled more than 78,000 vehicles, down 28 percent compared to the same period in 2017.
• Jiangling Motor Corporation (JMC) sold nearly 13,000 vehicles in February, down 39 percent compared to February 2017.
• The year-to-date sales for JMC totaled more than 35,000 vehicles, down 14 percent compared to the same period in 2017.
• Monthly sales of Lincoln reached nearly 2,700 vehicles in February, a 9 percent decrease compared to February 2017.
• The year-to-date sales for Lincoln totaled nearly 7,700 vehicles, about flat year over year.

Click here to view the full news release and sales chart
03-10-2018 04:33 PM
Re: Fomoco China 2018...

Ford's China vehicle sales in February fall 30 percent year-on-year
Won't have new products for world's biggest car market until next year
- Norihiko Shirouzu - Mar 9th 2018

...bigger factor behind the sales slump was what Fleet and other company officials have described as the dearth of new or significantly redesigned car models in its product pipeline, a situation that has weighed on the company's business at least since early 2017.

Ford does not expect new products to start hitting the market in China until the first quarter of next year...

- - - - - - -background & analysis - - - - - - -

Ford overhauls China operations: 'Bear with us'
Detroit Free Press
- Phoebe Wall Howard - Feb. 15, 2018 | Updated

Ford is resetting its China operations, moving some workers back to the U.S. and hiring Chinese citizens who speak Mandarin and firmly grasp the culture and market.

After reporting an 18% year-over-year dip in China sales last month, the Dearborn-based automaker is urging investors to keep the faith as the company makes big changes following the exit of Ford China CEO Jason Luo after just five months.

In an exclusive telephone interview with the Free Press, Peter Fleet, president of Ford Asia Pacific, outlined specific product and staffing challenges and a plan designed to strengthen the company in the largest automotive market in the world.

“It’s going to be a little bit of a bumpy ride for Ford in China this year," he said. "The second half will improve. We have a very clear opportunity in front of us. Bear with us.”

Fleet acknowledged that the unexpected resignation of Luo, a longtime metro Detroit auto supplier executive who left for unexplained personal reasons, was a setback. Fleet said he is interviewing CEO China candidates and plans to make a hire by June...

...One major reason for Ford's sales dip in China is the fact that the company hasn’t released new products. The vehicle that will carry Ford into its new season will be unveiled at the Beijing Auto Show in mid-April. Sales aren't scheduled to begin until fall 2018.

“That would be relevant in any market but it’s super relevant in China,” Fleet said, noting that many customers may be new to Ford, new to car ownership or seeking a special second car.

"The key is, they’re not replacing an existing car. They’re likely looking for the newest, most exciting product. In China, you get a big uptick with a new product. And if you don’t have new product, you pay a little bit of a price for that.”

The Chinese news media spotlighted Ford in December 2017, when CEO Jim Hackett and Executive Chairman Bill Ford went to Shanghai to announce plans to build 50 new products in China by 2025 that include utility and electric vehicles tailored for Chinese customers. Building overseas keeps prices low and increases profit margin.

In preparation for upcoming launches, Fleet said he will reduce by 30% the company’s 500 or so “international service employees” in China. Ford generally rotates its staff for three-year stints in operations overseas. At this point, Ford is looking to replace a portion of its employees from the U.S. and other countries in sales and executive positions in China with Mandarin-speaking locals.

“We want to reflect the market,” said Fleet, who is originally from the UK. “Ford has always had local nationals leading the business in various parts of the world, and China should be no different. We’ve made huge investments to turbocharge our start in Chinese business. We brought in global leaders to run that business. Now as the business matures, we’re getting many more Chinese and Chinese-born leaders in positions of authority in the company.”...

...Today, Ford is aggressively working to recruit Chinese candidates for all levels of the company, Fleet said.

Finally, but significantly, Ford is hoping for regulatory approval in late 2018 on its small battery electric vehicles being built with joint venture partner Zotye... &

“We will start to assemble the first of our new products. We’re doing a lot of restructuring of our business in China,” Fleet said. “Perhaps the most significant is establishment of the national distribution. We’re changing our sales and marketing plan. Whereas today we have three or four different approaches to the market, depending on which joint venture builds the product or whether it’s imported, in the future we’ll have one distribution channel.”

Ford points to an overall strong business in China, where consumers bought nearly 1.2 million vehicles in 2017.

“I know sales are off a little bit for reasons we described,” Fleet said. "This is a business that’s already established in scale. We’re in a cycle where we can’t grow our sales right now. But very shortly, we’ll start to grow the business again. We expect that to start happening during the second half of the year.”

Wall Street was disappointed to see Ford report the 18% drop in Chinese sales in January. That followed news that for all of 2017, sales in China dipped 6% from 2016.

For comparison, General Motors reports consistent growth in China. GM headlined a financial report with "GM China Sales Top 4 Million Vehicles for First Time in 2017."

China matters.

“The Chinese market is now the largest in the world both in terms of vehicle volume and the total value of vehicles sold, and growth continues to outpace other global regions," said Kristin Dziczek, director of the Industry, Labor & Economics Group at the Center for Automotive Research in Ann Arbor. "Posting losses in China while the market is growing and everyone else is gaining sales is a very bad sign, and something Ford needs to turn around, and quick.”

Consumers purchased nearly 28.9 million vehicles in China in 2017, compared with about 17.2 million in the U.S.

“General Motors and Volkswagen were early movers in China, giving them some serious advantages over Ford,” said Dave Sullivan, product analysis manager at AutoPacific, Inc. “Ford needs to come up with what makes them unique in the market, just as the F-Series and commercial vehicles have been Ford's stronghold in the U.S.”

- - - - - - -
Originally Posted by Bloggin View Post
Now I remember where I heard about Zotye before...
While China's Zotye has made a (bad) name for itself in Western press for ripping off designs like its Porsche Macan (SR8), Lambo Urus Concept and Audi Q3 clones, they also produce more original cars like the E200, a two-seater EV.
CarScoops/2017/09/Zotye E200 Electric Mini Car Spotted On Chinese Streets
And this is who Ford decided to get in bed with?? They already got caught cheating 3 times.
03-09-2018 03:51 PM
Re: Fomoco China 2018...

I guess we need to see the rest of the market numbers since all of Ford's partners are down significantly. But a market slide of 30% seems unlikely in the rest of China.

Ford has long struggled in China, especially compared to GM and VW. Part of it just might be that Ford wasn't that interested in the market because it's harder to turn a profit. Ford of China certainly has a bigger hill to climb than it did before. Ford is just a much slower moving global company very poorly positioned to develop for China, it doesn't iterate quickly or frequently which is why they've been especially vulnerable there. It's going to need to shift much more development to the region and spend much more time researching the market.

GM and VW really took off in China because they saw it as the Future worth investing, but Ford is usually only interested in today and would rather wait to find out what tomorrow looks like before betting on it. GM and VW obviously made the right bet, but hopefully it's not too late for Ford.
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