Add to favourites
News Local and Global in your language
23rd of July 2018

Automotive



Ford slides deeper into China rut

Ford, which undertook a big expansion in China earlier this decade, is paying the price for a lack of new models in its lineup. Last year, deliveries fell 6 percent even as overall vehicle sales in China rose 3 percent. Photo credit: REUTERS

UPDATED: 7/6/18 1:25 pm ET - adds details

BEIJING -- Ford Motor Co.’s China slump is intensifying, with vehicle sales tumbling 38 percent in June and the automaker recording its worst ever first-half, as buyers shun aging models that are awaiting updates and flock to rivals.

The automaker said Friday it sold 62,057 vehicles in China in June. Sales in the first half fell 25 percent to 400,443, down 25 percent compared to the year-ago period. According to consultancy LMC Automotive, it was Ford's biggest first-half percentage decline since starting operations in China in 2001.

Ford, which undertook a big expansion in China earlier this decade, is paying the price for a lack of new models in its lineup. Last year, deliveries fell 6 percent even as overall vehicle sales in China rose 3 percent.

“We always knew it would be a challenging year for us given our position in the product cycle,” Peter Fleet, head of Ford’s Asia-Pacific operations, which include China, said in a statement.

Fleet previously said Ford's sales won’t likely regain momentum in China, the world's biggest auto market, until next year when the first of new and redesigned vehicles arrive in showrooms in large enough numbers.

LMC Automotive senior market analyst Alan Kang said one reason Ford is struggling in China is "fiercer competition" in the car market, where luxury brands are suffering amid the rise of local Chinese brands.

"Weak global brands are squeezed like the meat in a sandwich, so this is why we can see not only Ford," but Hyundai Motor, Kia Motors, and Peugeot SA have "all suffered" in the last two years, Kang said.

{{title}}

{{abstract}} Read more >

Read More




Leave A Comment

More News

WIRED

Automotive News Breaking

ABR - News

All Motor Trend Stories RSS

Automotive news - from

High Gear Media Network Feed

Featured Articles

Disclaimer and Notice:WorldProNews.com is not the owner of these news or any information published on this site.