AutoBeta(AutoBeta.net)08/01 Report--

On August 1st, Changan Ford announced that, in line with Ford's strategic transformation and business adjustment in the Chinese market, it will officially take over the operation of Ford Electric Horse in the Chinese market from today, and announce the first important measure after the business conversion, comprehensively upgrade the third generation Qualcomm Snapdragon cockpit platform (8155 chip) for all existing Ford electric horse owners, and improve the response speed and intelligent level of the whole vehicle system. Provide car owners with a more convenient and intelligent driving experience.

In other words, from August 1, the main body of the sales, after-sales service and customer operation and maintenance of Ford Electric Horse will be changed from Ford Electric Mach Technology (Nanjing) Co., Ltd. (hereinafter referred to as "Ford Electric Mach") to Changan Ford Motor Co., Ltd. (hereinafter referred to as "Changan Ford").

Ford Electric Mach was founded in April 2020 with a registered capital of US $665 million. Ford China and Nanjing Jiangning Economic Development Industry Development Co., Ltd. own 81.2% and 18.8% of the company, respectively. Ford China has said that Electric Mach Technology is the first independent entity for the development and operation of intelligent electric vehicles established by foreign brands in the Chinese market, and it is also the strategic extension and key layout of the Ford Model e (Ford Electric vehicle) business unit in China.

In January 2021, Ford announced that the Ford Electric Horse would be produced at the Changan Ford plant and went on sale in December of the same year, with competitors targeting Tesla Model Y. However, sales of Ford electric horses in China are mediocre, delivering a total of 4860 vehicles in 2022 and only 1182 in the first half of 2023.

Weak sales in China have forced Ford to accelerate the pace of electrified transformation. In March 2022, Ford decided to split the electric vehicle and fuel vehicle business and operate independently, named Ford Model e and Ford Blue respectively, in which the electric vehicle business was led by Jim Farley, president and CEO of Ford Motor Company, but even so failed to reverse the decline of Ford electric horse sales in the Chinese market.

Earlier, it was rumored that Ford China was undergoing organizational restructuring. The Ford Electric Horse team, which was originally separated from Ford Electric Mach, would be integrated and returned to Ford China, and the independent electric car company would be cancelled later. However, the news was denied by Ford China. Relevant officials said that Ford China will unswervingly accelerate the electrification transformation in China, and will also work with partners to improve the electric vehicle business by expanding sales channels and other means to provide better and more convenient services for consumers.

In addition to electric cars, Ford fuel cars are also getting harder to sell. Ford sold 496000 vehicles in China in 2022, down 33.5% from a year earlier, and its market share fell to 2.1%, with a loss of $572 million in the Chinese market, according to Ford China data.

Ford Electric Mach's business adjustment is also in line with Ford's new plan to reduce investment for the Chinese market to improve profitability. In May, Jim Farley said on a conference call that Ford would conduct lower-investment, leaner, more focused and higher-return businesses in China, including increasing its focus on commercial vehicles. Ford plans to use its factories in China as an export center for economical electric vehicles and gasoline-fueled commercial vehicles. Farley believes that the Chinese market is important, but companies need to focus on the industries that generate the highest return on investment.

Of course, after entering Changan Ford's sales channel, Ford Electric Ma Neng European Service made a breakthrough in sales? We will also keep an eye on.

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