The interview between Thoughtful Media and Ford’s Vice President of Distribution, Nigel Harris gives some clear insights on how Ford reaches consumers and how it reels them into the brand. Although Ford’s sales lag behind GM’s sales, Ford is very pro-active in reaching potential consumers via traditional print media, social media and internet advertising. Having met Nigel myself a few years ago in Chengdu I can confirm that he is more than up to the task of clearing Ford dealerships of Ford vehicles.

Before Ford launched the Ford Fiesta in the Chinese market Ford sent out its high up executives to follow various ‘mei mei’ around town, (mei mei of course being the term for a young girl), before this sentence takes a turn for the worst Ford’s goal was to better understand the target audience for the Fiesta ahead of its launch as well as small car buyers in general. Ford wanted to have a greater understanding single, independent, female executives with an income of around 1500USD per month. Judging from Fiesta sales over the course of 2011, it seems that Ford’s homework really paid off, the Fiesta was one of the better selling small cars last year although it did face some strong competition from newer models over the course of 2011.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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So, enter Ford’s Kuga. The Kuga is somewhat larger than the Tiguan and is powered by the choice of a 1.6T and a 2.0T, the same 2.0T that is found in more prestigious vehicles such as the Volvo XC60 and Range Rover Evoque. Ford’s Chinese sales have been somewhat muted when compared to its rival, GM, but of course GM has multiple brands to play with in the Chinese market where as Ford only have one – they did try to introduce Lincoln via the Navigator but sales were low. Ford’s China sales grew to 519,390 units in 2011, on the other hand Chevrolet sold 595,068 units and 645,537 Buick’s were sold over the same period, Ford’s China line up is just five models, four locally made: Fiesta, Focus, Mondeo and S-MAX with the Edge SUV being imported from Canada. The introduction of a larger than the Tiguan compact SUV but selling in the same price range (200,ooormb – 300,000rmb) is likely to upset the market in a major way and will likely make the Kuga Ford’s biggest seller in the Chinese market in the next 18-24 months.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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The Ecosport was always called a crossover Fiesta by the Chinese press, but the introduction of the Ecosport last week in India threw them for a spin, the above spy shots seem to show that the production model will stay true to the concept unveiled last week. Eventually this model will be made with Ford’s Chinese joint venture between Chang’an Motors and Ford. The Chinese SUV market has been hot for several years running and this model will form part of an expected ‘SUV Assault‘ on the Chinese market, the Ford Kuga will be heading to China this year as well as a 2.0T Edge model which will sit under the range topping 3.6L model.

FrankF

Frank entered the automotive industry via his father's instructions. He grew up with cars around him, especially as his father was a major auto restorer, Frank's childhood was spent passing beers, tools and coffee to his father whilst he explained the ins and outs of engines. Frank now works in the Chinese car industry at a specific manufacturer.

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“Our strong sales performance in 2011 shows that Ford is on track to deliver on its promise to bring 15 new vehicles to China by 2015,” said David Schoch, chairman and CEO of Ford Motor China. “Ford expects sustainable growth moving forward in China. To keep up with market demand, Ford together with its partners are currently adding four new plants in China, including a vehicle assembly plant in Chongqing that will come online in 2012.

The Ford Mondeo is still proving to be a popular model for the Chinese car market, the Mondeo cleared sales of 8,095 units in December alone which gave them a 76% year on year increase and the highest figure since the Mondeo was introduced in 2007. Annual sales for both the Mondeo and the Focus increased by 25% and 10% respectively.

Ford’s investment in Jiangling Motors Corporation, JMC, turned to be a wise one, the company brought in sales of 194,588 units over the course of 2011 and delivered a 17% increase in sales in December alone, 14,912 units were sold in the 12 month of 2011. The Ford Transit can take credit for leading JMC’s strong sales, 5,726 Transits left JMC in December, an increase of 28% in year on year sales, in total over 58,000 Transits were sold in China last year.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Ford already sell the Canadian made Ford Edge in the Chinese market as a 3.5L vehicle, Ford are expected to introduce the new 2.0T Ecoboost Edge into China in the next few weeks, a lower displacement is likely to bring lower pricing than the current 350,000rmb range for the V6 version.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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The Ford Focus has been spotted out many times testing in China, but this is possibly the first time a Chinese spec one has been seen up so close. We will have to wait until next week to see the final thing but this gives a big indication of what is coming.

FrankF

Frank entered the automotive industry via his father's instructions. He grew up with cars around him, especially as his father was a major auto restorer, Frank's childhood was spent passing beers, tools and coffee to his father whilst he explained the ins and outs of engines. Frank now works in the Chinese car industry at a specific manufacturer.

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Ford will be putting the more European styled Kuga into production in China later this year, but in the meantime North American imports are expected to fill the gap and stop the Toyota Highlander and over large SUV’s running away with the market.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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According to Chinese media the Focus will be packing a 2.0GDI engine which is Ford-speak for a direct injection unit, the engines will be imported until Ford’s Chinese engine factory is online and producing engines in China in early 2012.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Ford’s Joe Hinrichs, president of Ford Asia Pacific and Africa, and chairman and CEO of Ford China was on hand to say: “Today’s ground-breaking ceremony represents yet another milestone in Ford’s accelerated expansion plan for China. This plan reinforces our commitment to aggressively grow the Ford brand in China and offer a full range of exciting, fuel-efficient vehicles to Chinese customers.”

Chongqing Mayor Huang Qifan, together with other high-ranking Chongqing government officials, attended the ceremony at the engine plant site in Chongqing’s Liangjiang New Area –the only national-level development zone located in western China.

The new engine plant represents one of several new investments that Ford has made to support its aggressive expansion plan in China. Last July, Ford’s commercial vehicle partner in China, Jiangling Motors Corporation (JMC), broke ground for a new USD 300 million vehicle assembly plant in Nanchang. JMC produces the Ford Transit, a leader in China’s light bus segment.

In April of this year, Ford announced that it will bring 15 new vehicles to China by 2015. These products will strengthen Ford’s position in existing segments while driving new growth in others. In addition, Ford signed an MOU in May to build its first transmission plant in the country, also in Chongqing, with an initial annual capacity of up to 400,000 units. Early next year, Ford’s second passenger-car assembly plant in Chongqing will begin production, starting with the new Ford Focus.

Ford plans to double the number of employees and dealership outlets it has in China by mid-decade.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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The Ford Focus and Mondeo models continued to be the bread and butter of the Ford China line up in May with Ford selling 16,756 Focus models and 6,005 Mondeo models in May alone. Focus sales increased by 33% in May 2011 over May 2010 sales and the recently introduced Mondeo ecoboost models appear to be resonating well with consumers as Mondeo sales are up 46% over May 2010′s figure.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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An insider told the reporter that the partnership plan is still under negotiation, and it’s not ready to be exposed to public.

Chang’an Auto Group incorporated Taiyuan Heavy Vehicle in 2007. The company’s market performance in heavy truck sector was unsatisfactory. The profits of Taiyuan Heavy Vehicle in the first half of 2010 were in the red with a 16.77 million yuan loss, and the asset-liability ratio reached 77%. Reviving the heavy truck business has been a vital issue for Chang’an over the past few months.

Chang’an has talked with several global automakers on jointly developing medium and heavy trucks in 2010, but the talks went nowhere. As Ford boosts its China strategy this year, Chang’an has managed to find a new spot for its partnership with Ford, and that’s in the heavy truck business.

The equity ratio of the two companies in the heavy truck business will be 50:50 partnership. Taiyuan Chang’an Heavy Vehicle Co., Ltd. will introduce Ford’s heavy trucks to Chinese market by introducing its technologies and products.

Heavy trucks are no strong points of Ford, and they may not be competitive in Chinese market, said a senior reporter with good knowledge about truck products.

Besides, the sudden change of market environment is another challenge to Ford’s entering of the heavy truck market. As the government tightens its macro economy control measures this year, China’s heavy truck market cooled down.

Under such market situation, Ford’s new subject faced in Chinese market is to lead Chang’an Heavy Vehicle out of losses when its technologies and products are not competitive.

We will keep you updated on the talks

SusanZhao

Susan is an English major from Xi Dian University in Xi’an, she majored in Technical English and worked for the English based news company Sino Cast. She later made the move to Shanghai in 2008 and made a name for herself at a translator in the automotive industry.

Besides the addition of a new name for the sedan variant, Ford have also upgraded the interior on both the hatch and the sedan and released several new color choices. A sports model trim has also been introduced as the Sports+, but the ST series of Ford’s still seems an age away.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Ford’s passenger vehicle joint venture in China, Changan Ford Mazda Automobile Ltd. (CFMA) signed a Memorandum of Understanding today for the transmission plant project with the Chongqing Municipal Government. The plant, with an initial investment of US$350 million to be entirely funded by CFMA, will produce advanced fuel-efficient 6-speed automatic transmissions with an initial annual capacity of up to 400,000 units, supplying Ford brand vehicles produced and sold locally by CFMA.

Chongqing Mayor Huang Qifan, Vice Mayor Tong Xiaoping, Chongqing New North Zone Administrative Committee Director Xiong Xue, Changan Automobile Company president Zhao Baolin, as well as Ford Asia Pacific and Africa president Joe Hinrichs, CFMA president Marin Burela and CFMA executive vice president Luo Minggang attended the signing ceremony.

“This transmission plant investment represents yet another important milestone in Ford’s accelerated growth plan for this important market,” said Joe Hinrichs, president of Ford Asia Pacific and Africa. “Together with prior investments announced in the past few years, this new plant demonstrates Ford’s unprecedented commitment to the China market and how we are leveraging advanced global technologies to support Ford’s aggressive plan to introduce 15 brand new vehicles to China by 2015.”

The transmission plant, to be located in Chongqing’s New North Zone, is scheduled to break ground this July and start production in the fourth quarter of 2013.

Marin Burela, president of CFMA, said, “As CFMA’s first transmission plant in China, this project will greatly expand our manufacturing footprint and technical capabilities in China , enabling us to provide an increased level of high-quality, and fuel-efficient vehicles with smart technologies to the Chinese consumers. We are incredibly excited about this important and strategic investment.”

CFMA manufactures award-winning Ford Mondeo, Ford Focus, Ford Fiesta and Ford S-MAX.

This new transmission plant represents the latest in a slew of investments previously announced by Ford and its partners in China.

A Memorandum of Understanding was signed between Changan Ford Mazda Automobile Ltd (CFMA) and Chongqing Municipal Government in September 2010 for a new engine plant with a total investment of US$ 500 million. It will start construction later this year and is scheduled to begin production in 2013 with an initial annual capacity of 400,000 units.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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The new Focus has been snapped out testing several times this month and body shells were also seen outside of a factory unit, despite the photos exceedingly poor quality they were still good enough to get Chinese auto media excited. The Focus will have its Chinese launch towards the end of the year but actual production within China is not expected to begin until early 2012 according to media reports.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Ford have finally confirmed that they will produce the next generation of Ford Kuga for the Chinese market and hope to get into production ASAP to have a strong offering in the compact SUV segment – something that Ford have completely ignored until recently. At the Shanghai 2011 Auto Show Ford showed off their Vertek SUV concept, which so far appears to have gained a high amount of media interest.

The president of Ford Asia Pacific, Joe Hinrichs, was on hand to say:“With China’s SUV market in rapid growth mode, we are excited and thrilled to bring the Vertrek concept to Shanghai in 2011. We expect it will attract many show visitors, auto bloggers and reporters alike because many of its state-of-the-art design cues will be incorporated in Ford’s next-generation SUV that will be built and launched in China,” Hinrichs added.

Ford had several new vehicles on show in Shanghai, including the new 2.0T Ford Mondeo and also the Fiesta Sporty+ which had sports style front and rear skirts to boost the Fiesta’s sporty image.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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So how can Ford do better in the Chinese market? The first step would be to widen their product line away from the Fiesta, Mondeo, Focus and S-Max, more cars mean more eyeballs. Of course they already have the Ford Edge on sale in China, but it is a North American import and doesn’t really fit in with the rest of the European styled Ford China line up.

Ford are planning to have the China, and Asia, Premier of several new models at the Shanghai Auto Show, sadly for Ford it appears that their plans were exposed at Shanghai Port when snap-happy photographers got sight of the cars prior to the show:

The Focus EV was already shown off at the CES Show in North America earlier this year, but this is the first time that Chinese and Asian audiences have had a chance to look at what they could driving in five years time.

Ford are already working with LG to produce the battery packs for the plug-in focus, GM have also worked with LG for the Volt battery systems. Power is derived from the 100 kilowatt block that’s installed under the hood, it translates to 123bhp and 181pound feet of torque at its peak. Top speed is supposed to be around 135kph which is more than enough for inner city runs, whilst the battery is supposed to be good for around 160 kilometers before it needs recharging. A three hour charge is required to top the battery up, but the good news is that can be done via a 240 volt home charger, but 20 hours with a 120volt charger.

C-Max Energi

The Ford S-Max has never been a big winner in China for either home or business users. Home users prefer smaller MPV’s such as the VW Tiguan which are also priced lower than the S-Max, and business users tend to go for larger vehicles such as the Buick GL8 or Mazda8, the S-Max was stuck between segments and never received much love. The C-Max might be the perfect model to take on the Tiguan in China, except that Ford are going to show off the C-Max Plug-in Hybrid in Shanghai.

Although this is the C-Max’s first outing in China, the real story is under the hood where the engine acts more like a range extender to compliment the electric motor, the combined battery pack and the Atkinson-cycle engine should be good to send the C-Max over 800km on a single charge and a full tank of gas, whilst the MyFord Mobile software will allow the driver to monitor the cars charging state on the move.

Vertek Concept

One of Ford China’s biggest weaknesses is its lack of a locally made SUV, Honda, Toyota, Nissan and countless Korean and Chinese models have ripped up the SUV sales charts without mercy, even VW were late coming to this party but they did bring a good product with them. The Vertek Concept has already been shown at the North American Auto Show in Detroit earlier this year and this will be its Asia Premier. The Vertek will Ford’s global small crossover and will kill the Ford Kuga in Europe and the Escape in the USA, so it is highly likely that this model will be made in China instead of the Kuga. The Vertek carries on with Ford’s Kinetic Design Language and will be powered by a 1.6T engine and will also carry stop/start technology to lower fuel costs.

Ford China do appear to behind the learning curve in the People’s Republic, both GM and Nissan have already announced plans for EV sales in China, whilst Ford have so far failed to introduce a locally made SUV model to take care of the popular compact SUV segment. Hopefully the above models will resonate with the crowds at the Shanghai Auto Show and should push Ford into further diversifying their product line up in China, and hopefully catch up with their biggest rivals.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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The American automaker is planning something different this year after realizing the importance of Chinese market.

It announced recently a plan of investing 7 billion yuan in China in the next two years. The investment will be used to build a top-class assembly plant and an engine plant in Chongqing. The assembly plant is now under construction and expected to make preparation for the local production of New Focus in 2012. The engine plant will increase Chang’an Ford’s production capacity from currently 400,000 units to 750,000 units.

Ford’s president Alan Mulally has admitted that they did not pay enough attention to Chinese market in the past ten years, and to develop Chinese market will be Ford’s most important strategy in future. The company plans to bring its best products and technologies to China, so as to change its lagging situation.

As an implementation of the plan, Ford’s local company Chang’an Ford launched its New Mondeo coming with Ford’s most advanced EcoBoost engine and PowerShift transmission last week. The powertrain will be assembled in China and will also be applied to the Focus and New Fiesta in future.

SusanZhao

Susan is an English major from Xi Dian University in Xi’an, she majored in Technical English and worked for the English based news company Sino Cast. She later made the move to Shanghai in 2008 and made a name for herself at a translator in the automotive industry.

The report raises Yuwei Plastics and Hardware Products company based in Donguan, China. Ford buys 80% of the factories output, and the relationship is so close that Yuwei set up a US office complete with a warehouse close to Ford’s factories in Michigan.

A 21 year old worker at the factory had three fingers ripped from his left hand when it was crushed in a stamping machine that was producing RT Tubes for Ford, the workers immediate supervisors had ordered the worker to turn off the safety stops so he could work faster to meet the companies standard or 3600 tubes per day, or one every 12 seconds.

The report can be read online here and goes into detail on what abuses took place, how the workers were fired for getting hurt on the job and then poorly compensated for their injuries.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Ford have updated the Mondeo’s looks for 2011 with a set of LED lights around the lower bumper, under the hood the 2.0T engine is good for 76.5KW (250BHP) at 6000rpm with a maximum torque of 340Nm between 1900 and 3500rpm, although the engine produces big numbers the fuel consumption remains low at 7.9L.

Pricing has not yet been announced, but it is expected to be competitive with the VW Magotan which retails at 270,000rmb for the 2.0T version.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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From AutoCar.co.uk:

Ford believes it has made a big enough impact along in the metropolitan cities along the coast of China to concentrate on the untapped rural market.

“Our marketing people are telling us there’s demand for an affordable family saloon,” said European design boss Martin Smith. “We think the Focus will be very popular in the cities. We’ve done the coastal areas and we’re now looking to move inland.”

Ford believes its decision to make a concept – the Ka-sized Start – for the 2010 Beijing motor show demonstrates that it is serious about the Chinese market and has boosted its brand across the country.

Read more on the Ford Start concept

The company wants to use the global reach of the new C platform to provide the economies of scale to broaden its work in the developing markets. The platform currently has 85 per cent shared components across the world. The variation in features is mechanical and due almost entirely to local legislation, to fulfil US crash legislation and EU pedestrian impact regulations, for example.

Bosses insist there are still many ways to design out costs. “We’d never engineer out safety,” said Smith, “but you could give it single-piece headlights and tail lights, and reduce the glass panels in the side from three to two.”

The Chinese market has a reputation for being quite size-sensitive, so it’s thought that Ford has ruled out using the Fiesta platform due to its smaller proportions, despite its success with the Ford Figo, India’s 2011 Car of the Year, which is based on the previous model Fiesta with a new nose and tail.

First drive of the all-new Ford Focus

One option is make the car on the C1 platform, used by the Mk2 Focus. Ford’s Chongqing factory, a thousand miles west of Shanghai, has made more than 500,000 Focuses on this platform and could provide a suitable facility for the new ‘affordable’ saloon.

In Europe, Valencia-built Mk2 Focus hatchbacks will remain on sale for the rest of the year alongside the new Focus, until the new production reaches full volumes. This will also allow Ford to continue to offer hefty discounts on new cars by directing customers towards the single Mk2 ‘Sport’ edition rather than the new car, whose residuals they are working to improve.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Fiesta - unlikely to be exported out of China

When compared with their great rival GM, Ford are not doing terribly well in the Chinese market but Ford are intent on changing this in 2011 with the launch of a series of new cars including the Mondeo 2.0T and Ford Edge Crossover. Ford were apparently discussing with Chang’an auto the export of Chang’an-Ford made vehicles to other developing markets, but Chang’an and Ford have both denied that any such talks and would only state that Ford are in talks with Chang’an regarding the expansion of their joint venture.

Ford and Chang’an maybe readying their own sub-brand that could be used to take on developing markets as with GM, Honda and Nissan, who have all launched their own sub brand models to take advantage of older technology to sell at a lower price bracket to economy buyers. Ford and Chang’an were also talking about building a car together to take on the Indian markets several months ago. What we are hearing now is likely to be an extension of that proposal which is likely to culminate in Ford airing its own sub-brand, which will be export bound – a far different picture than having Chinese built Ford Fiesta’s roaming the streets of North America anytime soon.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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According to information released, the Chang’an Ford built Fiesta received a score of 12.32, 15.38 and 14.77 in the frontal 100% head on collision, side impact and 40% offset impact. Another three points were awarded for the Fiesta’s additional safety equipment such as air bags and side impact curtains.

Ford’s Nigel Harris was quoted as saying “The Ford Fiesta’s five-star rating in the C-NCAP is proof that a small car can deliver significant safety,” said Nigel Harris, vice president of Ford Motor (China) Ltd. “With Fiesta, we have multi-dimension protection for the occupants on board, offered by smartly deployed airbags, body rigidity, and attention to detail that has gone into defining the Fiesta and its safety performance.” A long on going major concern for Chinese consumers is that small cars are percieved to be unsafe in the event of an accident, which has lead to the Chinese love affair with compact sedans.

Ford first introduced the Fiesta in 2009, and over 75,000 Fiesta’s were delivered to consumers in 2010 which was a 59% increase over 2009 sales.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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“We are grateful to our partners and Chinese consumers for yet another year of record growth in one of the world’s most dynamic markets,” said Joe Hinrichs, president of Ford’s Asia Pacific and Africa region and chairman and CEO of Ford Motor China. “It’s appropriate that in 2011, the year of the rabbit, we will be moving quickly to bring more of the vehicles Chinese consumers want and value while we continue to expand exponentially in China and across Asia Pacific.

Changan Ford Mazda Automobile (CFMA), Ford Motor’s passenger vehicle joint-venture in China, sold 41,784 units in December 2010, a 63 percent increase from December 2009. CFMA sold 403,283 units for the full year, a 34 percent increase from 2009

The strong performance was led by sustained demand for the Ford Focus and the new Ford Fiesta. Focus achieved sales of 16,891 units for December and closed the year with 172,270 units sold, having sustained monthly sales of more than 10,000 units for 22 consecutive months. With bold, dynamic design, class-leading quality, safety and fuel efficiency, Ford Fiesta sold 7,853 units in December, a 50 percent increase from December 2009, and 75,199 units for the year, a 59 percent increase from 2009.

Jiangling Motors Corporation (JMC), Ford’s commercial vehicle investment in China, sold 14,911 units in December, an increase of 26 percent year-on-year, concluding 2010 with total sales of  178,999 units, representing a 56 percent  increase over 2009.

Ford achieved several milestones in China in 2010. Together with its partner JMC, Ford began construction of the USD300 million green-field plant in Nanchang for Ford and JMC-branded vehicles; CFMA signed an MOU for a new USD500 million engine plant in Chongqing, where a second CFMA assembly plant is currently under construction; added 100 full-service Changan Ford dealerships in China, bringing the total number of Changan Ford dealerships to 340; and launched the new Ford Edge, Ford’s newest mid-size SUV in China.  The new Ford Edge, which first appeared in dealer showrooms at the start of January 2011 is one of Ford’s new offerings for 2011, a sports Fiesta is expected to air shortly and also the Ecoboost range of engines with powershift gearboxes that will be available on the Mondeo range.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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The base model will be priced from 369,800rmb whilst the next model up will be 389,800rmb and the flagship model 429,800rmb.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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CFMA, Ford’s passenger vehicle joint-venture in China posted sales of 39,819 units in November, an increase of 28 percent from November 2009. So far this year, CFMA has sold 361,012 vehicles, an increase of 31 percent from January – November last year.

JMC, Ford’s commercial vehicle investment in China sold 17,010 units in November, boosting its January to November sales by 59 percent compared to the same period in 2009.

Popular models

• Ford Focus remains popular in the competitive mid-sized car segment with 17,139 units sold in November, an increase of 34 percent from a year ago.
• Sales of the Ford Fiesta are up 60 percent from the same 11-month period in 2009.
• Ford Transit achieved its record monthly sales of 5,285 units in November, jumping 58 percent from November 2009.

The Fiesta was named one of the 10-most fuel efficient vehicles (compact car category) by the renowned Topten China website and its long-term partner the World Wildlife Fund (WWF).

To further support its rapid expansion plan in China, Changan Ford is adding 66 new dealerships in China by the end of the year, bringing its total number of dealerships here to 340.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Ford Motor Co. said it plans to add an additional 66 dealers in China in the closing weeks of this year, expanding its dealer network in the country by nearly a fourth as part of an effort to push more aggressively into smaller cities and towns where demand for cars is surging.The late-year push will bring to about a hundred the number of new stores Ford and its local manufacturing and sale joint-venture partner, Changan Automobile Co., added in China in 2010, leaving it with a total of 340, according to a Ford statement seen by The Wall Street Journal.

Ford says the new sales outlets are part of plans to expand in fast-growing second- and third-tier cities in western and northern China. These cities—like Nanning, Shijiazhuang, Harbin and Anyang—are relatively unknown outside of China but have populations well over one million and are expected to help lead the next wave of growth in the Chinese economy, Ford believes.

Those hinterland markets should “grow steadily and reach the stage over the next several years where more people can afford vehicles,” Joe Hinrichs, head of Ford’s Asia Pacific and Africa operations and chief executive of Ford China, said in an interview. “So getting dealers in those locations, and ultimately bring(ing) out products that are attractive and interesting to those markets, is a key part of our strategy moving forward.”

Ford has plans to launch four new products over the next three years in China, including the Ford Edge crossover vehicle next month, the Ford executive said in a telephone interview.

Mr. Hinrichs said industry sales in China’s overall vehicle market are likely to amount to “a little bit shy of 18 million” vehicles this year, from less than 13.5 million vehicles in 2009. He expects the growth to continue next year, saying an increase of 10% over 2010 “wouldn’t be surprising.”

Mr. Hinrichs declined to forecast Ford’s sales. Ford’s joint venture with Changan sold a total of 245,092 vehicles during the January-October period this year, up 30% from a year earlier. When sales of Ford Transit vans and others vehicles it produces with a second Chinese partner are included, the Dearborn, Mich., company sold a total of 392,169 vehicles, up 39% from 2009.

The number of Chinese households with annual income of more than 60,000 yuan (US$9,018), a level deemed sufficient for a family to buy a no-frills car, is estimated to nearly double over the next four years to 65.6 million, according to U.S. consulting firm Alix Partners.

The problem for foreign auto makers is that may of them, including Ford, do not have low-priced models that are in hot demand in those lower-tier Chinese cities.

Ford’s lowest-priced model is currently the Fiesta, a subcompact priced between 79,000 yuan and 110,000 yuan. But cars in high demand among entry-car buyers are those priced around 60,000 yuan, such as the redesigned Chevy Sail, a subcompact launched earlier this year by Ford’s rival General Motors Co. The Sail starts at 57,000 yuan, which places the car in direct competition with no-frills cars from indigenous Chinese brands such as Geely and Chery.

Read the rest of the article on the WSJ website

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Details are still sketchy, but it appears to be a continuation of the plans that were announced earlier this year for Chang’an and Ford to jointly work on a new brand and a range of small cars to take on the low end of the market, and potentially India at the same time.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Ford Star

The Ford Start concept car was unveiled at this years Beijing Auto Show and is expected to replace the Ford Ka in European markets and will be built using an an aluminum and steel platform and is expected to be very similar to the concept version according to media reports.

The car will be powered by Ford’s Ecoboost 1.0L engine which will be a three cylinder unit using direct injection, and also a start/stop system which will give it a very low fuel consumption figure of 4.7L/100km. Ford is expected to offer the car to emerging markets such as China, India and other South East Asian markets

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Chang’an Ford Mazda Automobile, the passenger car producing arm of Ford China sold 286,113 units in the first three quarters of the year, an increase of 32%. The Ford Focus lead the way again with sales reaching 123,111 by the end of September, the Ford Fiesta remains a strong seller with a 67% rise in sales to 53,849 units sold in the first 9 months. The Ford Mondeo and S-Max also reported steady growth according to Ford China.

Jiangling Motors Corporation (JMC), which is part of Ford’s commercial vehicle investment in China reached sales of 132,960 units from January to September, due to the Ford Transit’s strong sales.

According to Ford China’s CEO and Chairman, Mr. Robert Graziano, Ford have widened their dealership network by 100 new dealerships, which has increased the network to 340 full service dealerships. Ford China are also expected to launch the Mondeo Ecoboost turbo engine and the American built mid sized Ford Edge SUV into China later this year.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Ford Motor Co (F.N) expects its sales in China to outpace growth in Chinese car market this year as it expands its dealer network, the company’s local sales chief said on Wednesday.

Ford, which competes with Toyota Motor (7203.T) and others in the world’s largest auto market, is adding 70 dealers in the country, bringing the total to 310 by the end of the year, Nigel Harris told Reuters in an interview.

Ford and its joint ventures in China sold 42 percent more vehicles in the first eight months of 2010 than they did in the same period a year earlier.

That outpaced the overall market, which grew 39 percent.

“We always push for more. We expect to grow faster than the industry,” Harris said ahead of an industry forum in the southwestern city of Chengdu.

China remains a bright spot for the global auto industry, which is still struggling to recover from last year’s steep downturn, but the market has been losing steam since May after Beijing tapped the policy brakes to keep the economy from overheating.

Many industry executives, including Hu Maoyuan, chairman of top Chinese automaker SAIC Motor Corp (600104.SS), expect China’s auto market to return to a slower but more rational growth pattern as early as this year.

Harris said he shared that view.

“Year-on-year growth of 40, 50 percent is not sustainable,” he said. “It puts too much pressure on production. It puts too much pressure on the dealer organization. It’s really difficult to manage that sort of growth.”

Harris said he expected vehicle sales in the country to grow roughly 18 percent in 2010 as frantic sales in 2009 had pushed up the comparative base.

To help drive growth, Ford plans to roll out its Edge sport utility vehicle in China in December, followed by a new generation Focus sedan in 2012.

Harris declined to disclose the price of Edge, whose competing brands include Toyota’s Highlander, but he said it would be less than 500,000 yuan ($74,150).

“I will be pretty satisfied if we could sell 300 to 400 units a month,” he said.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Recently GM and SAIC teamed upto take on the Indian auto market that will see SAIC assist GM in understanding developing market requirements and will possibly see the Wuling brand launched in India, the Chang’an Ford partnership is likely to follow a similar outline.

In recent years, Chang’an have jumped from nowhere to becoming one of the biggest self developed auto makers in China, and is a major small car manufacturer and MPV producer.It is likely that Ford will work with Chang’an to develop a range of low cost vehicles for emerging markets, by using Chang’ans R&D center Ford will be able to create a new range of low cost Ford products for the developing world.

PSA also recently inked a deal with Chang’an to create a joint venture in the Chinese market that will produce cars initially in Shenzhen but is expected to build other factories elsewhere.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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The Fiesta SVP will launched in the middle of September and will be available with manual and automatic gearboxes, pricing is expected to be 92,900 and 100,900rmb for the automatic models. Ford will only be selling 2000 of the SVP units, and there will be a choice of three colors.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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