Ford intensifies China growth plan
Ford outlined the next phase of its China expansion strategy, focused on electric and smart, connected vehicles; SUVs; a streamlined business structure; and closer connections to Chinese customers.
“China is not only the largest car market in the world, it’s also at the heart of electric vehicle and SUV growth and the mobility movement,” said Executive Chairman Bill Ford. “The progress we have achieved in China is just the start. We now have a chance to expand our presence in China and deliver even more for customers, our partners and society.” Added Ford CEO Jim Hackett, “Ford’s aspiration is to become the world’s most trusted mobility company, designing smart vehicles for a smart world. We are very excited to see this vision come to life in China.”
To enable future growth in China, Ford will contain structural cost in the region throughout 2018, aiming to generate greater efficiencies, become more operationally fit, and deliver additional value to shareholders. Even as the team works to streamline, Ford plans to grow its China revenue by 50% by 2025 vs. 2017 and is focusing its business expansion on three areas: even more smart, connected vehicles; closer connections to Chinese customers; and a streamlined business structure.
The company plans to offer more than 50 new Ford and Lincoln vehicles in China by 2025. The expanded product portfolio will reflect an even stronger emphasis on SUVs—with eight all-new utilities, along with more electric vehicles.
The company will launch at least 15 new electrified vehicles from Ford and Lincoln. The new Zotye-Ford joint venture will deliver a separate range of affordable all-electric vehicles under a new brand, pending regulatory approvals.
“From luxury Lincolns, to Ford cars and SUVs, to an all-new electric vehicle brand, we will meet the growing desire and need in China for great new energy vehicles,” said Jason Luo, chairman and CEO, Ford China. “Each of them will be safe, efficient, fun to drive, and backed by an ecosystem that makes charging, sharing, and servicing easy.”
Plus, by the end of 2019, 100% of new Ford and Lincoln-badged vehicles in China will reportedly be connected through either embedded modems or plug-in devices. Company leaders also are working on broader infrastructure opportunities to improve future mobility experiences.
In 2019, the company will start producing five additional Ford and Lincoln models in China for Chinese customers, including a new Lincoln premium SUV, and the company’s first global, fully electric small SUV.