As many are well aware, China is the world’s largest automotive market, which obviously makes it quite appealing to companies that make and sell, well, automobiles. However, China is also a hyper-competitive auto market – especially for foreign automakers – and Ford has certainly faced its fair share of struggles there, too. That’s precisely why The Blue Oval essentially gave up on becoming a major player in China some time ago, though it continues to do quite well, there, regardless. In fact, it seems as if Ford China raked in more money last year than previously reported.
According to Reuters, Ford China made $900 million in earnings before interest and taxes in 2024, news that comes straight from John Lawler, Ford’s vice chair. “When I left China in 2016, it was a digital society back then,” Lawler said at an analyst conference while discussing his former role as the head of Ford China. “It’s just only advancing. They’re leaders in battery technology. They’re leaders in development. They have the lowest cost structure in the industry.”
As Ford Authority reported back in January, CEO Jim Farley previously stated that Ford China made $600 million last year, so this is a significant jump by any means. At that time, Farley noted that this sum included vehicles like the Lincoln Nautilus, which is built in China and exported to other markets, including the U.S. Regardless, this news is notable given the fact that Ford typically doesn’t report earnings by region, so it gives us a little insight into how Ford China is performing.
It’s also notable given how automakers not based in China have historically struggled to gain market share in the world’s largest automotive market. In fact, as Ford Authority recently reported, Ford’s cross-town rival, General Motors, is in the midst of 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.
No Comments yet