Ford is accelerating the output of its vehicle offerings in China hoping to offset an ongoing sales slump.
Ford Motor Co. reported its third quarter sales in China slid 30.3% compared with the year-ago results, similar to General Motors’ results for the same period. GM reported its quarterly sales results for China on Thursday.
The Dearborn, Michigan-based automaker delivered 131,060 vehicles in China in the third quarter, Ford said in a statement. Ford’s sales in China fell 35.8% in the first quarter and by 21.7% in the second quarter.
It delivered approximately 421,000 vehicles during the first nine months of the year, according to Reuters. Like its U.S. rival, Ford has been mired in a lengthy sales slump in China, which is its second-largest market behind North America.
(GM’s Third Quarter Sales Fall in China)
Sales of Ford-branded vehicles dropped 37.7% while its Lincoln brand fell 24.1% during the quarter. Jiangling Motors Corp., a joint venture that produces vehicles with Ford, Sales of JMC indigenous-branded vehicles reached 41,999 units in the third quarter, down by 13.3% year-over-year. September sales totaled 16,167 units, showing growth through the quarter, up by 19% compared to August and 32% compared to July.
Changan Ford’s sales down by around 33.5% in the third quarter, according to Reuters calculations based on Changan’s filings. Ford has been struggling to revive sales in China after its business began slumping in late 2017 and falling 37% in 2018, after a 6% decline in 2017.
The Territory is one of Ford’s best sellers in China and the Territory EV will be Ford’s first all-electric model in the country.
“China automotive industry sales slowed during the third quarter following an elevated second quarter sales period, primarily driven by China V Emission Standard stock clearance actions,” the company said in a statement. “Ford China third quarter sales reflect these market conditions, as well as actions taken to continue to build sales momentum moving forward.”
(Ford, GM Keep Taking Sales Hits in China; Q2 Sales Down)
The automaker unveiled its Ford China 2.0 plan earlier this year, which calls for the automaker introduce more than 30 new models in China during the next three years. To meet the demand for NEVs, more than a third will be battery-electric vehicles.
The company will also move decision making down to local management teams and hire more Chinese staff to improve relationships with joint venture partners.
Ford China launched a series of new models in the third quarter that better meet the needs and preferences of Chinese customers, including the Focus Active, new Edge ST and ST-Line, new Taurus and Territory EV. These actions delivered sales growth through the quarter, providing a platform for ongoing recovery moving forwards, the company noted.
(Ford China 2.0: Automaker Kicks Off Second Act in China)
In September, total retail sales of Ford reached 28,119 units up by 5% compared to August and 25% compared to July. Total retail sales of Lincoln reached 4,165 units in September, representing growth through the quarter, up by 11% compared to August and 13% compared to July.