U.S. automobile manufacturer Ford has recently announced that it is in the process of separating its China facility from the larger umbrella of Asia Pacific operations and turning it into stand-alone operations that will report directly to the global headquarters of the company. This move have been made with the aim of improving growth prospects of the company in China and help drive sustainable value generation. Anning Chen, who was with Chery Jaguar Land Rover previously, has been appointed as the new CEO and president for the China facility.
According to Ford CEO and President Jim Hackett, the impact of business in China plays a crucial role in repositioning Ford’s stand in the international market in a long-term scenario. Thus with this strategy, the company has moved ahead a step in strengthening its position in the country. The announcement comes in wake of the recent slowdowns witnessed in Ford sales figures in China, which is also presently the largest automotive market of the world.
In September this year, Ford recorded a drop of nearly 43% in its sales figures in the country as compared to the figures a year ago. The ongoing trade dispute between China and United States has also hit the company hard. Analysts have also suggested that other factors such as an increased cautiousness among consumers in China and reduction in some varieties of peer-to-peer loaning activities in the country are also playing a role in the slashing sales numbers. As such, the increased attention on this market through the strategy is likely to allow Ford an improved chance at winning back its position in the highly promising auto market in the country.