The Ford Focus in China.
Despite the increasingly serious downturn in the Chinese economy, both Ford Motor Co. and General Motors Corp. managed to lock down record sales in China for 2015.
That bucks the trend that has hammered a number of their key competitors, including Japanese giant Toyota and embattled German maker Volkswagen. Both makers are upbeat, albeit playing things cautiously as they look ahead to 2016.
So far, both GM and Ford have refrained from making any predictions about China’s market. However, executives from both companies are likely to be pressed for forecasts during the North American International Auto Show in Detroit next week.
(VW global sales tumble; diesel scandal and Chinese slump take a toll. Click Here for more.)
A relative latecomer to the vast Asian market, Ford reported record sales of about 1.1 million vehicles in China last year even as fears over the Chinese economy and a possible “China Shock” jolt stock markets in Europe, North America and Asia.
Ford said Friday that its 2015 sales in the country were up 3% from 2014 and it also set a new monthly sales record in December, customers snapping up 124,768 of vehicles. That’s up 27% from the prior-year period.
GM had a few sales hiccup in China last year but still managed to set a new record.
Ford’s passenger car joint venture, Changan Ford Automobile, broke its annual and December sales records. For 2015, the joint venture sold 836,425 vehicles: a 7% rise from 2014. It sold 96,960 vehicles in December, a 49% jump from the year-ago period. Demand for its new Mondeo gave a boost to Changan’s annual and December sales performances, the company said.
The Chinese market has increasingly come to resemble the American market, with SUVs becoming a major factor. Annual sales of sport-utility vehicles like the Ecosport, Kuga, Edge, Explorer and Everest rose 13% to 274,188 vehicles. December sales of SUVs surged 56% to 32,290 vehicles.
(Automakers shift production as SUV sales keep surging. For more, Click Here.)
There was a downside. Changan Ford did report a dip in its commercial truck business as the year came to a close, a potential signal that the downturn of the Chinese economy is beginning to take its toll on the commercial side of the auto industry.
Ford’s report came just days after General Motors and its joint ventures reported they had delivered a record 3,612,635 vehicles in China in 2015, which was up 5.2% from the previous high in 2014. China remained GM’s largest market in terms of retail sales.
An average of one vehicle was sold every 9 seconds and nearly 9,900 vehicles were sold each day last year, GM calculated. In December, the maker and its various Chinese joint ventures sold an all-time monthly record 445,227 vehicles in the domestic market, an increase of 14% on an annual basis, GM officials noted.
“We expect to have increased our market share in 2015 through great products and our team’s relentless effort,” said GM Executive Vice President and President of GM China Matt Tsien. “We anticipate continued growth in 2016, as we plan to introduce 13 new and refreshed models starting with Cadillac’s all-new CT6 sedan later this month.”
But there are some observers questioning Tsien’s upbeat estimate. The Chinese economy has been stuttering for months. And the automotive market started to slide mid-year, sales only recently getting a lift from government incentive programs.
(Toyota regains sales crown. Click Here for the story.)