Ford’s slowing China business is creating roadblocks for its global ambitions
By Trefor Moss and Mike Colias July 22, 2019 5:30 am ET SHANGHAI— Ford Motor Co. F -0.30% ’s multibillion-dollar push to expand in China this decade has veered off course, leaving it mired in a sales slump that is weighing on its future in the world’s largest auto market.
Last year, Ford’s sales in China plunged 37%, much sharper than the broader market’s 3% decline. It reported a $1.5 billion loss in the country in 2018, its first after several profitable years. Ford’s China market share was 2.1% in the first quarter this year, down from 5% the same period in 2016. The challenges are plenty. Ford’s China missteps played out over several years and involved a revolving cast of executives as well as a fraught relationship with its joint-venture partner Chang’an Automobile Co. That left the company with outdated models, frustrated dealers and excess factory space.
Recent tensions with Chang’an have further hampered Ford’s turnaround efforts. Last year, Ford’s marketing managers in China sought to erect a five-story vending machine to dispense cars for test drives. The promotion was intended to highlight a new partnership with e-commerce giant Alibaba Group Holding Ltd. and boost Ford’s sales through online retail.
Ford had found success in China under former Chief Executive Alan Mulally, who pressed for a major industrial expansion earlier this decade. The company opened dealerships at a rate of about 100 a year, mostly in less-developed cities farther inland, and established new factories, looking to catch up with GM’s more-established manufacturing footprint.
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