Ford Motor Company

Ford Quarterly China Sales Drop 22% as New Leadership Takes Over, Strengthens Ties in Joint Venture

1:20 PM, Jul 5, 2019 — Ford Motor (F) on Friday said its second-quarter sales dropped nearly 22% year over year in China as the company began to build a new leadership team with experience in the market and strengthened ties with its joint-venture partners.

The automaker said that sales of its namesake brand in the just-ended quarter were 92,885 vehicles, down 28% from the prior-year period and up 24% compared with the first quarter. Lincoln sales were up 7% from last year to 12,404 and were up 28% from the first quarter.

Meanwhile, sales of its JMC indigenous-branded vehicles were 48,753 in the second quarter, down 13% from the year before.

Ford said it has taken “aggressive actions” to cut dealer inventory, boost showroom traffic, stabilize prices and raise dealer profitability. It said dealers ended June with 28 days worth of supply, an 18-month low.

The company in October named Anning Chen as president of its Chinese operations. Chen had been chief executive of Chery Automobile Ltd China and chairman of Chery Jaguar Land Rover Automotive, China.

In April, Ford announced its Ford China 2.0 strategy to redesign its business in the Asian nation. The company said at the time that it would focus on speeding up product development and delivery, smart technology development, build on strategic partnerships, drive innovation and develop local talent.

General Motors (GM) said earlier Friday that it sales in China sank 12%, with losses recorded in nearly all of its brands, apart from luxury brand Cadillac, which surged almost 37% year-on-year.

Deliveries from GM and its joint ventures in the world’s second-biggest economy fell to 753,926 in the quarter as the company said it underwent a “significant product changeover,” according to a statement Friday. That compares with 858,344 sales in the same period of 2018.

Price: 10.26 Price Change: +0.06 Percent Change: +0.54