Changan Ford's sales fell, Ford embarked on a decline in the Chinese market

There are recent rumors that Changan Ford, Ford's joint venture in China, will reduce its production capacity by one million vehicles. According to media reports, Changan Ford plans to cut production capacity as its sales fall. Currently, the company has reduced its total production capacity from 1.6 million vehicles to 670,000 vehicles. It is estimated that Changan Ford has five vehicle factories in Chongqing, Harbin and Hangzhou, but its production capacity utilization rate is not satisfactory, and more than half of its production capacity is idle.

According to ITBEAR technology information reports, relevant representatives of Changan Ford stated in response to the media that the company is working hard to cope with challenges and undergo transformation. Although there is no clear response to the rumors of production capacity reduction, it seems from their words and deeds that Changan Ford's capacity utilization rate is indeed unsatisfactory.

According to Changan Ford’s production data in 2022, its capacity utilization rate is approximately 47%. This means that more than half of the capacity is unused. At the same time, Ford's sales in the Chinese market are also on a downward trend. In 2022, Ford's full-year sales in China will be 496,000 vehicles, a year-on-year decrease of 33.5%, and its market share is only 2.1%, a decrease of 0.3% from the previous year. In addition, Ford's loss before interest and taxes in the Chinese market reached US$572 million.

It is worth mentioning that Ford China once had a glorious period. Changan Ford sold 957,500 vehicles in 2016, just shy of reaching its sales target of one million vehicles. However, as sales decline year by year, this goal is getting further and further away from Ford.

Since 2017, Ford's sales in China have been on a straight-line decline, reaching a freezing point in 2019, with sales of only 184,000 vehicles. Ford China's sales have rebounded after launching a number of new models, but its performance has gradually declined since 2021.

In addition, Ford’s new energy vehicle competition in the Chinese market is extremely fierce, but Ford has not yet made a breakthrough in this field. Although Ford's Mach-E has already surpassed Tesla Model in overseas sales, It is comparable to the Y, but Chinese consumers are not interested in it, with only 4,860 units sold in 2022.

For Ford, its full-line strategy in the Chinese market has not been effectively promoted, and the road to future development may be even more difficult.

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