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Ford China Sales Grow 4 Percent in May
Ford | Jun-05-2015 1:35 AM ET


​SHANGHAI, China — Ford China sold 91,013 vehicles in May, a four-percent increase compared to 87,887 in May 2014. From January to May, Ford sold 459,982 vehicles in China, up one percent from 456,594 during the same period last year.

Ford’s passenger car joint venture Changan Ford Automobile (CAF) sold 67,357 vehicles in May, an increase of three percent from 65,229 in May 2014. Year-to-date sales for CAF reached 332,999 vehicles, up one percent from 330,896 during the same period last year.

Despite a softer commercial vehicle segment, Jiangling Motors Corporation (JMC), which sells the Ford Transit commercial van, sold 20,910 vehicles in May, up seven percent from 19,569 in May 2014. Year-to-date sales reached 114,638 vehicles, up four percent from 110,248 during the same period last year.

In May, Ford unveiled its MyEnergi Lifestyle pilot program at the inaugural CES Asia. MyEnergi Lifestyle is launching in China for the first time and provides a model for how families in Beijing and Shanghai can significantly reduce their energy footprint with a suite of cutting-edge technologies, including solar panels, smart charging equipment, smart appliances and a plug-in hybrid electric vehicle.
 

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Nice to see Ford sales up but when will they start releasing Lincoln sales?
 

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Nice to see Ford sales up but when will they start releasing Lincoln sales?
I have not seen anything yet. But Lincoln should be doing well. In a country with so many brands offer much of the same, Lincoln should be see as something different, a new name and new designs with new technology.
 

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That seems awfully low, they are only up 1% from the previous year? Is the market softening or shrinking in China? A 1% increase in the US would be considered weak right now, and that's which much higher volume in the US.

I'm assuming Taurus, Edge, and other new factories coming online will change that soon.
 

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Ford China sold 91,013 units for May. Which breaks down to CAF: 67,357; JMC: 20,910 for total sales of locally produced vehicles at 88,267

Which leaves Imports at 2,746. This import number would include Explorer, Edge(current), Focus ST, Fiesta ST, and Lincoln combined. No luck so far finding a breakdown of individual model sales for China.

Also of note....

The Escort is exactly what Ford needed to turn up the heat in China.

"For the first time, the Escort now outsells the Focus (-40% to 21,748) to become Ford’s best-seller in China. Although surprising, this move is somewhat logical as the Escort was launched the replace the previous generation Focus still on sale here and accounting for up to half of all Focus sales in China."

"the other superstar is the Ford Escort, extremely impressive at #18 and 59,083 sales, even cracking the overall Top 10 in March to become the American manufacturer’s best-seller almost single-handedly lifting Ford up to #5 brand in the country. This is a game changer for Ford."

 

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...Is the market softening or shrinking in China?...
that's what I've been hearing
on PBS, Nightly Business News - not just car-forums
tho:
...just-imho this might-perhaps be that the ruling gazillionaires have enough vehicles (*for the moment*)
and now the emerging (eww) middle class comprises the majority of buyers?...

..."the other superstar is the Ford Escort, extremely impressive at #18 and 59,083 sales, even cracking the overall Top 10 in March to become the American manufacturer’s best-seller almost single-handedly lifting Ford up to #5 brand in the country. This is a game changer for Ford."

when we first saw&heard about the Escort, I thought it was mostly:
- temporary
- convenient
- purely to fill a pricepoint
- & had no significance outside of China (despite many people clamoring for it in the U.S just cuz they couldn't have it=imho)

Now I'm getting a different feeling / like something similar might be implemented outside of Asia...
 

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GM was down 4% for the month, There is a long way to catch them but every little bit helps. I question both manufactures reason to be in China but any good news is still good. With heavy investments, low to no profit, need to split the small profit with there Chinese partner and the 25% tariff on imports into China, not to question about the theft of intellectual property. I see no reason to be there. Then there is always the ability to get your profits into the shareholders hands.
 

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GM was down 4% for the month, There is a long way to catch them but every little bit helps. I question both manufactures reason to be in China but any good news is still good. With heavy investments, low to no profit, need to split the small profit with there Chinese partner and the 25% tariff on imports into China, not to question about the theft of intellectual property. I see no reason to be there. Then there is always the ability to get your profits into the shareholders hands.
Actually China is becoming Fords most profitable markets. Even with building new manufacturing facilities and launching about a dozen new cars, 1st qtr 2015 was up $103 Million. Unlike Europe(just launched Focus, C-Max, S-Max, Galaxy, and the Vignale sub-brand) the was down -$185 Million. Also, the 25% tariff ended back in 2012 or 2013, which may be part of the issue with price gouging in China last year, since car or parts prices did not drop when the 25% tariff ended.
 

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. Unlike Europe(just launched Focus, C-Max, S-Max, Galaxy, and the Vignale sub-brand) the was down -$185 Million.
The only new launches this year have been the Mondeo and Focus so far, and very very limited specification Focus & Mondeo. What I mean is that available features on these two models have only now this late spring become available.
The face lifted C-Max just started showing up in showrooms this week, and the S-Max/Galaxy are due sometime this summer.
Lets see when the Mondeo Vignale spec shows up.
But supplier issues are limiting what features are available, plus the economy still stinks.
 

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...Is the market softening or shrinking in China?...
that's what I've been hearing
on PBS, Nightly Business News - not just car-forums
tho:]
...just-imho this might-perhaps be that the ruling gazillionaires have enough vehicles (*for the moment*)
and now the emerging (eww) middle class comprises the majority of buyers?...
google-cache, Text of a website with downright NASTY overdone code...

For Luxury Car Markers, The Chinese "Cash Cow Is Dying" - ZeroHedge.com

Submitted by Tyler Durden on 06/17/2015


It’s no secret that Chinese President Xi Jinping’s crackdown on corruption has had a rather dramatic effect on VIP gambling revenue in Macau, which has fallen for 12 consecutive months.

But the pinch is being felt well beyond the Baccarat tables.

“The enormous growth rates luxury-car makers like us have seen in China in recent years won’t continue,” Porsche CFO Lutz Meschke said, at an event in Atlanta last month. Some estimates have Porsche selling more vehicles in China this year than in the US, and as Bloomberg notes, the Chinese market — which has been a huge boon for luxury manufacturers in recent years — is set to cool significantly going forward...

...after a government crackdown on graft and conspicuous consumption, growth in luxury-car sales is slowing, and Chinese buyers are settling for less opulent models. That could spell an end to the gold rush for brands such as Porsche, BMW, and Audi, which have relied on China for about 50 percent of their global profits, estimates Sanford C. Bernstein...

...The trend has been apparent for some time now. In April for instance, BMW chief Norbert Reithofer (who stepped down in May) said luxury manufacturers "need to get used to single-digit growth in China." "We only sold 14 Rolls-Royces in February. Something has clearly changed," Reithofer added.

Now, the numbers are in for May, and as FT reports, the "cash cow is dying." (Link to article below)...

...That became clear on Tuesday as Audi reported a fall in monthly sales in China for the first time in more than two years. The company – a unit of Volkswagen and the leading supplier in China’s premium auto market – said sales fell 1.6 per cent in May compared with the same month last year.

“The reticence to buy in the Chinese luxury segment was particularly noticeable,” said Audi.

Sales of BMWs and the Bavarian company’s Mini vehicles were down 4 per cent year-on-year in May, the manufacturer’s first sales decline in China in 10 years.

Jaguar Land Rover, the UK carmaker controlled by India’s Tata Motors, has also seen sales of its once sought-after SUVs fall as much as 16 per cent in the first quarter, according to the company. Overall, JLR’s China deliveries were down 32 per cent year on year in May...

...it appears as though when it comes to luxury car purchases, a decelerating economy, a corruption crusade, and an effort to crackdown on extravagence within the Communist Party have been enough to offset the enormous gains investors have enjoyed by racking up record margin debt to day trade the Shenzhen.

On the bright side for the Porsches, BMWs, and Jaguar Land Rovers of the world, there's always the possibility that FTSE and MSCI EM benchmark inclusion will work to sustain China's equity bubble and drive valuations even further into the stratosphere, making millionaires of the country's semi-literate day trading hordes and sparking a mad grab for status symbols. Fingers crossed.

- - - - - - - - - - - - - - -
Europe’s premium carmakers are warned the China ‘cash cow is dying’
FT.com
(Financial Times)
June 16, 2015
Andy Sharman in London and Tom Mitchell in Beijing

(google-cache, Text)
 

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Discussion Starter #12
This could all work out very well for American luxury brands that 'may' have been seen as less than the German luxury brands, and less 'extravagant' and ok to buy.

But it is interesting that it's the consumer sales decline of VW luxury products that the media takes as an entire industry decline of luxury automobiles. When in the same month Cadillac was up, and Lincoln has to be up since they have no where to go but up.

What I think is happening is that the Germans have flooded the Chinese market with cookie cutter luxury cars for years, with large and small version of the same car, to a point where Chinese consumers are looking for something 'new'. Audi models that look a lot like VW models are also hurting VW brand sales. But I bet the New MKX and New Continental will be just what they are looking for. Can't wait to see China sales numbers of the MKC and MKZ. I think Lincoln is in the right place at the right time.
 
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