SHANGHAI, China — Ford's sales in China soared 44 percent last year — and joint ventures did even better. The company is now looking forward to more success in 2010, anticipating that consumers will continue to be lured by the government's stimulus package.
Ford's China General Manager of Sales, Nigel Harris, says he expects the China auto market to grow 8 percent in the coming year and adds that Ford's ambition is "to sell more than the industry average." Harris says Ford sees huge sales potential in second- and third-tier cities in China.
Robert Graziano, head of Ford's China operations, said the carmaker's sales in China hit a record high of 440,619 units in 2009. Its passenger-car ventures with Chongqing Chang'an Automobile and Mazda sold 315,791 vehicles, a jump of 55 percent from a year earlier. Sales of the Ford Transit light commercial vehicle totaled 33,585 units.
Graziano said Ford wants to accelerate its expansion in China. Toward that end, the automaker is investing $490 million in a third plant, which will boost its total production capacity to 600,000 by 2012. Four new models are also expected to be launched in China within three years.
Ford will put fuel-efficient engines and advanced PowerShift transmissions into China-made cars this year. Within four years, 90 percent of Ford's China-made vehicles will go green, Harris said.
Graziano declined to say if Ford's plant would make Volvo cars after it agreed in principle to sell the Swedish unit to China's Geely Holding Group. Ford sold about 15,000 domestically made Volvo cars in China last year.
Other major automakers, including General Motors and Volkswagen, also drove to robust sales in China last year as they benefited from the government's tax incentives and subsidies. GM's sales in China increased by 67 percent last year to 1.83 million vehicles, and VW's sales on the mainland and in Hong Kong grew by 36.7 percent, to 1.4 million units.
Inside Line says: Ford backs up its desire for more sales with concrete plans for the next few years in China. — Vivian Jin, Correspondent
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