Ford Plans To Manufacture Few Models In China

The American automaker looks forward towards China for growth in the competitive world.

Ford Motor Company intends to turn China into its topmost Lincoln luxury vehicle market. The automaker is talking with its partner Changan Automobile Group regarding manufacturing the brand’s automobiles in Chongqing, revealed people aware of the issue.

In the Chinese city the American automaker is thinking to establish a major production presence that would cater to the demands of  the local market and turn into an Asia based export base, a person disclosed on the condition of anonymity. The production could start not before 2018 only if the automaker’s unit retains its strong growth in the country. Earlier in 2015, the unit has promising start in the region, the source reported.

No contract has been signed on important points like profit-sharing, and it might yet take up till 2020 or even later for the roll out of the first Lincoln in China, source close to the matter revealed.

The shares of Changan Auto declined by 2% in Shenzhen trading, the largest intraday decrease in 3 weeks. The benchmark Shanghai Composite Index declined 0.1%. CEO of Ford Mark Fields has stated the US could be replaced by China, as Lincoln’s biggest market by the end of 2020. The automaker is investing a sum of $2.5 billion to refit the worn out luxury line.

The car maker had ceased making the long-lasting business travel stalwart Town Car that had turned into Lincoln symbol. In late 2016, the automaker’s division will bring its Continental nameplate back on a broad-shouldered cruiser equipped with an opulent back seat targeted at wealthy Chinese consumers who are interested in being chauffeured.

During its first year in the country, Ford’s division delivered over 11,000 automobiles, which Mark has called the rapid beginning for a luxurious- automobile brand there “in recent history.” Production in the Chinese region would let the Michigan based organization save an import tax on 25%, increasing the competitiveness of its productions in a premium auto markets led by German automakers Mercedes- Benz, BMW as well as Audi.

Ford’s unit would join Nissan Motor Company’s Infiniti and General Motors’ Cadillac amongst luxurious number plates that are manufactured in the country. The possibility to manufacture Lincolns in the country is eased by the fact that the luxurious cars are developed upon the same mechanical foundations as Ford vehicles already manufactured, stated a person.

It is not clear which Lincoln automobiles the automaker is thinking to build in the country. As of now, the brand delivers four import models in the country, revealed its website. The MKZ vehicle is offered at a recommending starting price of $48,000 (315,800 yuan), or around the same as a China-manufactured Mercedes C-Class.

According to Ford, it plans on to increase the number of its store from 40 to 60. The company will be able to boost revenue and have strong growth if its project rolls out successfully.