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Chang’an Ford to start work on self developed brand for low end of market
Chang’an Motors have seen some amazing growth in the past few years for their self developed vehicles, and last month alone they beat both FAW and Dongfeng in monthly sales. Chang’ans joint venture with Ford has also seen some excellent sales thanks to the popular Fiesta, Focus and Mondeo models. Now Chang’an and Ford are teaming up together to start on a new project that will see them create a new brand and a new range of models for the low priced segment of the Chinese automotive segment.
Luo Ming Gang, the Executive Vice President of Chang’an Ford Mazda announced in a recent interview that Ford and Chang’an will link up to take on the second and third tier cities. Luo cited that the Ford Fiesta, Focus and S-Max remain targeted towards the high end of the market where joint venture groups rain supreme, but noted that Ford performs particularly well in first tier cities but has noted a large gap in the second and third tier cities that Chang’an Ford plan to exploit over the course of 2010.
Exact plans for the brand have yet to be announced, but it is expected that Chang’an will provide the car and Ford will provide the quality that will take them into the targeted markets.

Content Admin
950 Posts
Not Bad, Chevy has Sail and its selling very well. Sail alongside the Cruze, Spark and Aveo.

Ford should employ a similar strategy where they go after the model T entry level customer. Some of those people will own a Lincoln someday.

Mercury C557
22,734 Posts
Ford mulls expanded partnership with Changan - AutoNews
April 26, 2010 06:01 CET
BEIJING (Reuters) -- Ford Motor Co. is looking at options to expand its partnership with Chongqing Changan Automobile Co. beyond the terms of the current joint venture the automakers have in China, a Ford senior executive said Saturday.

"We have a strong partnership with Changan and we're talking about a lot of opportunities for the future," said Joe Hinrichs, who heads Ford's operations in Asia and Africa.

Hinrichs declined to say whether Ford would look to bring Changan commercial vehicles to markets outside China, a step that would parallel the move recently announced by rival General Motors Co...

...Hinrichs, speaking to Reuters on the sidelines of the Beijing auto show, said Ford's senior management is focused on the growth opportunity in markets such as China now that a painful restructuring in its home market is behind.

"We want to grow and we know we need to grow and we know we need new products to do that," Hinrichs said of Ford's China operation.

Ford sells the Fiesta subcompact, the Focus compact and Mondeo mid-sized sedans and a version of the Transit Connect utility van in China. It will add the Edge crossover this year but trails market leaders such as Volkswagen AG and GM in the breadth of its offering.

The automaker showed off a concept car with a 1.0-liter, three-cylinder engine with direct injection and turbocharging, an extension of the EcoBoost engine line it has used to improve performance and fuel economy in larger vehicles. Ford says the engine will power future small cars but has not committed to making a microcar for China.

"I don't think you have to have (a vehicle) for every segment in China, but I think you have to have scale for your dealers and suppliers and for your partners in manufacturing," Hinrichs said. "We have some opportunity there."

Sales surging, adding plant...

...In China, Ford's first-quarter sales were up 84 percent, ahead of an industrywide surge of nearly 70 percent. It has not detailed 2010 sales projections, but plans to add 70 new dealers in China, expanding its retail network by 25 percent.

Ford is also adding production capacity in its China-based venture with Changan. The automaker is building a new factory in the central city of Chongqing set to begin making a version of Ford's Focus for China in 2012.

For its part, Changan now ranks as the No. 3 automaker in the Chinese market, now the world's largest. Its sales more than doubled in 2009...

..."I think the exciting thing is that Changan has grown dramatically over the past several years," Hinrichs said. "With Ford's strength and restructuring over the last several years and with Changan's growth, it's a great partnership."

Hinrichs joined Ford in 2000 as a plant manager outside Detroit. He won recognition for his work in negotiating a series of landmark cost-cutting deals with the automaker's North American unions from 2007, just as the U.S. auto market tipped toward a sharp decline. He is also seen as one of a handful of potential successors to Mulally as CEO.

Hinrichs, 43, who assumed his current Shanghai-based job in December, prefers not to talk about that prospect...


U.S. rebound lets Ford turn eyes to Asia - DetNews
Automaker hopes to leverage S. America, Europe gains in China

Bryce G. Hoffman / The Detroit News
Last Updated: April 26. 2010 1:00AM
...Growth in China
J.D. Power and Associates last week forecast that sales of Chinese passenger vehicles -- cars, SUVs and minivans -- would grow to 13.55 million passenger vehicles in 2015, an increase of more than 55 percent over 2009.

Last year, Ford announced that it was investing $490 million in a new assembly plant in Chongqing that will produce the Focus when it is completed in 2012.

Ford is showing off the new Focus this week in Beijing at Auto China 2010, China's premier auto show, along with the Start concept -- a four-passenger microcar designed for Asia's congested cities.

While Hinrichs said Ford exceeded its plan goals for China in 2009, he said the company needs to expand its dealership network there to take advantage of its growing brand strength.

Earlier this month, Ford announced its best quarterly results yet for China, with sales increasing 84 percent year-over-year to 153,362 vehicles...
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