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Changan Ford

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Changan Ford
31434229 MULTINATIONAL COMPANIES Case study: Ford in China

Ford motor company one of the biggest auto-making multinationals in the world has made a tremendously successful entry into the Chinese market. In Nov 2006, it announced its accelerated plan in China and a strong yearly performance in 2006 at a growth rate of 100.8 per cent.

The origin of Ford’s presence in China can be traced to 1913 when Henry Ford sold his famous Model- T ‘s in Shanghai. Today Ford is back in China in a big way.
Ford sells two car models Fiesta and Mondeo through its two Chinese joint ventures-Changan Ford Mazda (CFMA) Automobile Limited that has two units in-Chonqing and Nanjing-. And the Jiangling motor co Limited (JMC) in which Ford holds 30% shares. Ford motors (China) also imports some of its other brands for sale in China including Land Rover, Mazda, Jaguar and Volvo. It operates through over 150 dealerships all over China.

In April 2006, Ford pledged to increase its exports of Sports Utility Vehicles from the U.S.A to meet the increasing demand of the Chinese market. In 2005, Chinese customers purchased Ford SUV”s at a growth rate of 50% over the previous year. Maverick and Lincoln are its best selling brands. The other profitable segment is its locally produced car brands-Fiesta, Focus and Mondeo, which have captured the imagination of the Chinese passenger vehicle market.

Mondeo was named ‘2005 car of the year China,’ by motor magazine Motor Trend. Ford passenger vehicle sales both imported and locally produced touched record 64,223 units, an increase of 40% over 2004. Commercial trucks, which are made along with partner Jiangling Motor Co., sold a record 48% over previous year sales. The positive sales trend continued in 2006 with Ford brand sales touching average of 10,000 units a month.

In May 2006, Changan Ford Mazda Automobile co. Ltd. Ford’s joint venture celebrated its fifth anniversary. At the Chonqing plant, which has grown,



References: 1.Reich. D. (2005) COE hosts Conference on OEM sourcing and auto safety in China.5/12/2006 Western State University, Detroit 2)Schuetzle D., Zhu W., Han W., and Marcoux M.. Ford Motor Company and Environmental stewardship in China. Market place- Ford Motor Company in China www.chinaenvironment.net. 3)Stevens J. (2006) Ford’s momentum intensifies in China. www.linkgeneral.com. 4)” Ford announces China expansion’- bbc news (2003).5/12/2006, www.news.bbc.co.uk 5)’Ford committed to greater growth in China”-(2006) www.autochannel.com. 6) Ford China launches 2003 Ford conservation, environmental grants programs. (2004) Ford Motor Company, media.ford.com 7) Lean Manufacturing. Wikipedia. 5/12/2006 www.wikipedia.com

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