Ford Motor Company (NYSE:F) Hires New Chief of Operations for Its China Subsidiary

0
273
Illustrative image of a Ford Logo, Cambridge,. (Photo by: Newscast/UIG via Getty Images)

Ford Motor Company (NYSE:F) hires Chen Anning in an ambitious plan to stimulate sales in its China Division. The new changes include Spinning off its China operations from the Asia-Pacific Division. Ford’s China operations have been relatively slow and the company’s top management is making rigorous changes to stimulate performance. “Our performance in China clearly has been disappointing. I can assure you the leadership of the company has swarmed the issue.” Jim Hackett the company’s Chief executive acknowledged.

According to Hackett, the new changes are in line with the company’s strategy to position its international operations for long term success. The position of chief of operations for the company’s China division has been vacant for the past nine months following Jason Luo’s resignation in January.

Ford’s declining China sales

Anning’s first hurdle would be to contain the division’s nose-diving sales that have been ongoing for the better part of this year. According to statistics by the China Association of Automobile Manufacturers, Ford’s sales dropped four percent in July and 3.8% in the previous month. In the first nine months of 2018, sales compared to the previous year were down thirty percent.

  ( )

The company further announced that its August sales declined thirty six percent compared to last year’s sales for the same month. Ford is blaming its devastating China sales to an “aging product line” and is planning a vigorous launch of 50 brand new designs by 2025.

Performance strategies

According to plans, the company has unveiled a new model that the company is hopeful will sell in China’s small cities where the company currently has a poor presence. Ford will also be partnering with a local manufacturer to build electric automobiles.

The move to commission manufacturing in China will help the company be price competitive especially now that China imposes 25% tariffs on automobiles imported from the US. This is in retaliation to Trump’s 20% tariffs on foreign automobiles.

Hackett believes that penetrating the Chinese automobile market is crucial.  “Success in China is critical as we reposition our global business for long-term success. With today’s actions, we are strengthening our commitment to the China market and reorganizing our international markets to strengthen their performance.”

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment. 

financialstrend.com