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Ford opening 66 more new dealerships in China by end of year; Asia-Pacific growth plans

Ford is opening 66 new dealerships in China by the end of the year. Ford will have added 100 new dealerships in China in 2010, bringing its total number of outlets here to 340. The newer dealerships are located primarily in the fast-growing second- and third-tier cities located in western and northern China.

The new dealerships will be located throughout Ford’s sales regions in China, in cities such as Liyang, Shijiazhuang, Harbin, Wanzhou in Chongqing and Anyang. Many of these cities, relatively unknown outside of China, have populations well above one million people and will help lead the next wave of growth in the Chinese economy.

It’s all about growth—for Ford, for our partners and most importantly, growth for our customers. With the additional 66 dealers we are opening, we will be on track to have more than 340 operational dealerships in China by the end of the year. Sixty-six is an auspicious number in China, and we think it bodes well for our future success.

— Nigel Harris, general manager of Changan Ford Sales Company

Ford and its joint venture Changan Ford Mazda Automotive Ltd. (CFMA) are building a new assembly plant in Chongqing, and just signed an agreement to build a new engine plant also in Chongqing. Ford is introducing the new Edge SUV to China in mid-December.

Ford expects 70% of its growth in the next ten years to come from its Asia Pacific and Africa region. Ford’s Asia Pacific and Africa region encompasses markets on three continents, including Australia, China, India, Thailand and South Africa. Industry sales in the region are expected to increase from 16 million units in 2009, to an estimated 50 million units by 2020.

Ford has invested US $4 billion since 2006 in the region and employs more than 25,000 people there. In India, Ford has invested $500 million this year to double production capacity, launch the Ford Figo, expand exports, and increase engine production capacity to 250,000 units.

In addition to building a new assembly plant and engine plant with CFMA, Ford is building a new plant in Nanchang with Jiangling Motors Corp (JMC). The US$300-million JMC assembly plant will have the capacity to produce up to 300,000 vehicles per year and will produce both Ford- and JMC-branded vehicles. A strategic partner in producing Commercial Vehicles in China, JMC is 30% owned by Ford.

Ford is aggressively expanding in Thailand as well. Construction is underway for a new $450-million Ford assembly plant scheduled for completion in 2012, and Ford and Mazda Motor Corporation recently announced an investment of US$350 million in their Auto Alliance Thailand (AAT) joint venture to support the production of next generation pickup trucks. The all new Ford Ranger made its global debut last month at the Australian International Motor Show.



This headline could read...Ford is transferring 100 more dealership from USA/Canada to China. This trend could last for the next 10+ years.


Good points HD! The Chinese will learn eventually, after their orgy of industrialization and real estate development plays out, that cars and paving the world over are not the answers to all their problems.


At first I was thinking - OK, GM and Ford are luckily able to make some big bucks exporting (big) vehicles to China until Japan, Korea and China itself fill this market.

What I forgot was that the sinple (and I do mean SIMPLE) explanation is that GM and Ford are actually MAKING the Chinese buy big vehicles.


TT: Yes we may have managed to sell our addictions.....for a short time.

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