Ford Electric Horse sales sluggish in China, independent company disbanded

Although Ford has good sales in the U.S. market, its performance in the fiercely competitive Chinese new energy vehicle market has been disappointing.

Ford has recently made organizational structural adjustments, integrating the Ford Electric Horse team from the independent electric vehicle company Ford Electric Mach Technology Company and returning it to Ford China, and plans to cancel the independent company in the future. According to multiple people familiar with the matter, the adjustment is expected to affect more than 2,000 employees and is scheduled to be completed in July.

The main reason for the dissolution of the independent company was that the Ford Electric Horse's sales in the Chinese market failed to meet expectations. Sluggish sales of the Ford Electric Horse have left the independent company struggling to shoulder its own profit and loss responsibilities, according to people familiar with the matter. Despite the reintegration of the Ford electric horse team, Ford will not withdraw from the Chinese market, and Ford electric horse models will continue to be produced by Changan Ford.

According to the editor’s understanding, the Ford Electric Horse has not been able to achieve a sales breakthrough since entering the Chinese market in 2021. Sales reached a high of 1,535 vehicles in December last year, but then gradually declined. The latest sales data in April was only 332 vehicles, which was not as good as the similar model Tesla Model. Y's sales volume also lags far behind that of SUV models from many domestic new energy brands.

However, from a global perspective, Ford's electric vehicle business has also been losing money. In March last year, Ford split its automotive division into three new business units, namely the electric vehicle and fuel vehicle business units Ford Model e, Ford Blue, and Ford in charge of commercial vehicles Pro. The financial report for the first quarter of this year showed that Ford’s electric vehicle business unit’s loss before interest and taxes reached US$722 million, becoming the only loss-making segment among Ford’s three independent business units.

Ford Electric Mach Technology was established in 2020 with a registered capital of US$665 million. Ford China and Nanjing Jiangning Economic Development Co., Ltd. hold 81.2% and 18.8% of the company's shares respectively. Currently, Ford Electric Mach Technology is still in operation. Although Ford's electric vehicle sales are doing well in the U.S. market, the company still faces fierce competition in the Chinese market.

Ford hopes to improve its market performance in China through this organizational structure adjustment, but there are still challenges as to whether the Ford Electric Horse can buck the trend and achieve sales breakthroughs. In the future, Ford's development in the Chinese market will face greater pressure and tests.

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