Under Chinese government industrial policy, access to the world’s largest auto market is only granted if automakers establish joint ventures with local companies.
Ford Motor said today it is reorganizing its Asia Pacific operations where it is losing money and announced the hiring of a new president and CEO for Ford China. Ford China is elevated to a stand-alone business unit reporting to Ford global headquarters. Critics say that this move is decades late in the World’s largest vehicle market.
The timing seems odd as Ford is entering a busy period of product renewal in China, including the current high-volume launches of the Ford Territory, Ford Focus and Ford Escort. It’s part of Ford China’s commitment to launch 50 new vehicles by 2025.
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Ford said that Anning Chen, an experienced auto executive in China, is rejoining Ford to become president and CEO, Ford China, a newly created position. Peter Fleet, president Ford Asia Pacific, will help the transition of Chen into his new position as leader of the Ford operations in China. Fleet – who may or may not have a future at Ford -will also oversee the establishment of a new International Markets business unit, which will initially be comprised of Ford’s existing Asia Pacific businesses outside of China and other markets globally, which will be subject of a future announcement.
“Success in China is critical as we reposition our global business for long-term success,” said Ford President and CEO Jim Hackett, whose own future at Ford is the current subject of much media speculation in Detroit given the dismal stock price and operating losses.
Chen, a 25-year auto industry veteran, returns to Ford as president and CEO of Ford China, effective November 1. Chen brings to Ford experience in establishing alliances and joint ventures; and developing competitive products for China. He will lead the company’s operations in Greater China, including all import and joint venture operations. Prior to this position, Chen served as CEO, Chery Automobile, Ltd. and Chairman of the Board of Directors, Chery Jaguar Land Rover, Automotive, China.
At the same time, in creating an International Markets business unit, Ford claims it will, reduce bureaucracy, have the right cost structure and improve operational fitness – easier done in a press release than in actual business performance.
Ford Also Promised
- Plans to increase local production for Ford and Lincoln;
- Detailed significant investment in China-led engineering and R&D;
- Creation of a new single sales and service channel;
- Creation of a new joint venture with Zotye for line of small battery-electric vehicles;
- Use strategic alliances with Baidu and Alibaba to explore areas of cooperation in AI, connectivity and digital marketing.
Ford Motor in China
Ford’s wholly owned subsidiaries, joint ventures and investment in China include Ford Motor (China), Ford Motor Research Engineering (Nanjing) Co., Ford Automotive Finance (China), Changan Ford Automobile, Changan Ford Mazda Engine, Jiangling Motors, and Zotye Ford Automobile, which will start operations in 2018. Subject to regulatory approval, Zotye Ford will produce small all-electric vehicles under a new indigenous brand.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Ford Motor Creates Stand-Alone China Business to Stop Loses in Its Latest Asia Pacific Shakeup
Under Chinese government industrial policy, access to the world’s largest auto market is only granted if automakers establish joint ventures with local companies.
Ford Motor said today it is reorganizing its Asia Pacific operations where it is losing money and announced the hiring of a new president and CEO for Ford China. Ford China is elevated to a stand-alone business unit reporting to Ford global headquarters. Critics say that this move is decades late in the World’s largest vehicle market.
The timing seems odd as Ford is entering a busy period of product renewal in China, including the current high-volume launches of the Ford Territory, Ford Focus and Ford Escort. It’s part of Ford China’s commitment to launch 50 new vehicles by 2025.
Read AutoInformed.com on
Ford said that Anning Chen, an experienced auto executive in China, is rejoining Ford to become president and CEO, Ford China, a newly created position. Peter Fleet, president Ford Asia Pacific, will help the transition of Chen into his new position as leader of the Ford operations in China. Fleet – who may or may not have a future at Ford -will also oversee the establishment of a new International Markets business unit, which will initially be comprised of Ford’s existing Asia Pacific businesses outside of China and other markets globally, which will be subject of a future announcement.
“Success in China is critical as we reposition our global business for long-term success,” said Ford President and CEO Jim Hackett, whose own future at Ford is the current subject of much media speculation in Detroit given the dismal stock price and operating losses.
Chen, a 25-year auto industry veteran, returns to Ford as president and CEO of Ford China, effective November 1. Chen brings to Ford experience in establishing alliances and joint ventures; and developing competitive products for China. He will lead the company’s operations in Greater China, including all import and joint venture operations. Prior to this position, Chen served as CEO, Chery Automobile, Ltd. and Chairman of the Board of Directors, Chery Jaguar Land Rover, Automotive, China.
At the same time, in creating an International Markets business unit, Ford claims it will, reduce bureaucracy, have the right cost structure and improve operational fitness – easier done in a press release than in actual business performance.
Ford Also Promised
Ford Motor in China
Ford’s wholly owned subsidiaries, joint ventures and investment in China include Ford Motor (China), Ford Motor Research Engineering (Nanjing) Co., Ford Automotive Finance (China), Changan Ford Automobile, Changan Ford Mazda Engine, Jiangling Motors, and Zotye Ford Automobile, which will start operations in 2018. Subject to regulatory approval, Zotye Ford will produce small all-electric vehicles under a new indigenous brand.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.