Ford takes 'significant step' in China with new SUV

Ford Motor Co is speeding up its introduction of new models in China, as the US carmaker seeks to revive its lackluster performance in the country mainly resulting from a stale product lineup over recent years.

The carmaker said last week that it is localizing a mid-sized SUV called Territory early next year for customers in smaller, emerging cities, where the model will see more growth potential than in large cities.

Developed with its local partner Jiangling Motors Corp, the model will be available in gasoline, mild-hybrid and plug-in hybrid versions.

"With the new Ford Territory, we are expanding our compelling SUV lineup with a new model entry, which sits between the EcoSport and Kuga," said Peter Fleet, Ford's vice-president and president of its Asia-Pacific operations.

"We look forward to welcoming many new Chinese customers to the Ford brand for the first time," he added.

Ford is already offering EcoSport, Kuga, Edge, Explorer and Everest SUVs in the country, where SUVs have proved to be the most popular vehicles.

A total of 4.96 million SUVs were sold in the first half of this year, up 9.7 percent year-on-year, according to the China Association of Automobile Manufacturers.

"When the new Ford Territory arrives in Chinese showrooms in early 2019, our customers will be able to enjoy a smart, spacious and connected Ford SUV, instilled with our Ford brand DNA, at a new accessible price," Fleet said.

He called the model "a significant next step" in Ford's China strategy, which, together with new Focus and Escort cars coming later this year, will be among the first salvos of the carmaker's plan to introduce 50 new vehicles into the country by 2025.

Ford has been suffering from a lineup that has not been overhauled for around two years in a market where people love new models.

Its sales in the first half of the year slumped 25 percent to 400,433 units compared with the same period last year.

Sino-US trade tensions are compounding those problems, with China's recent retaliatory tariffs imposed on cars made in the United States set to affect their popularity compared with rivals from other countries.

Besides localizing a growing number of models, Ford is tapping into local talent as well to bolster its sales operations.

Li Hongpeng, a former executive at Mercedes-Benz's China business, has been put at the helm of the carmaker's national distribution services division that became operational from July.

As part of its Changan Ford joint venture, the division is responsible for marketing, sales and servicing of all Ford-branded passenger vehicles sold in China. It is now integrating sales networks separately built by Changan Ford, JMC and Ford China for better efficiency and customer experience.

"This appointment and the establishment of the division further demonstrate our strong commitment to China, and to our partnership, by offering tested talent to lead a simplified, improved and consistent approach to our Ford brand and customers in this critical market," Fleet added.