While it is the world’s largest automotive market, China is also one of the toughest such places for automakers to compete, as Ford is well aware of. The Blue Oval has changed up its strategy (and executive staff) in the Chinese market several times over the past few years as it attempts to gain market share there, but it isn’t alone in those struggles. In fact, its cross-town rival, General Motors (GM) has begun cutting costs – and jobs – in China as well.
According to GM Authority, The General is cutting jobs from its Chinese research and development department, a move made in response to its $104 million dollar loss in Q2 of 2024, as well as $210 million in the first half of 2024. The automaker is reportedly working to make its China business more self-sustainable and better able to compete with domestic companies. However, it likely won’t be the last cutback, as GM is also reportedly talking to its Chinese partner SAIC Motor Corporation regarding further capacity reductions.
Moving forward, GM plans to build and sell lower cost all-electric models using SAIC and Wuling Motors via the joint venture SAIC-GM-Wuling, but it faces tremendous competition in that space. However, it will also explore pricier, higher-end EVs as well – all with a goal of turning a profit in China by 2027.
As for Ford, it’s focusing on a pared-down lineup in China centered around existing models rather than designing and building vehicles specifically for Chinese customers as it had done in the past. After handing over the struggling Ford Mustang Mach-E to the Changan Ford joint venture, the automaker has also launched both the Ford Bronco and Ford Ranger in China, which are being manufactured locally, but otherwise aren’t much different than their U.S.-based counterparts.
We’ll have more on everything Ford’s competition is up to soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.
Comments
By requiring local joint-venture partners, China’s automotive policy has done exactly as intended. They have now built up locally owned expertise in design, engineering, manufacturing, and supply chain to the point they don’t need western or Japanese companies. It was naive to believe it would turn out otherwise.
I think Ford should retain a presence in the world’s biggest market, but it won’t be the driver of growth it was once thought to be.
Yeah – the ‘American’ companies have been leaving (I think the first was JEEP) and that will continue….
They should just all leave right now….
But the Great Brain CEOs will stick around for many more quarters of continuing losses, then their stockholders will be screaming to leave, and they ultimately will.