Asset-light operation: Ford’s strategic adjustment
Against the backdrop of profound changes in the global automotive industry, Ford Motor’s business adjustments in the Chinese market have attracted widespread attention. With the rapid rise of new energy vehicles, traditional automakers have accelerated their transformation,and Ford is no exception. In recent years, Ford’s sales in the Chinese market have continued to decline, especially its joint ventures Jiangling Ford and Changan Ford have not performed well. In order to meet this challenge, Ford began to explore a light asset operation model, reducing its reliance on traditional fuel vehicles and focusing on the development and sales of new energy vehicles.
Ford’s strategic adjustment in the Chinese market is not only reflected in product layout, but also in the integration of sales channels. Although rumors of the merger between Jiangling Ford and Changan Ford have been denied by many parties, this phenomenon reflects Ford’s urgent need to integrate its business in China. Mei Songlin, a senior automotive analyst, pointed out that integrating retail channels can improve operating efficiency, expand outlets, and thus enhance terminal competitiveness. However, the difficulty of integration lies in how to coordinate the interests of different joint ventures, which will be an important challenge for Ford in the future.
Market performance of new energy vehicles
Although Ford’s overall sales in the Chinese market are not good, the performance of its new energy vehicles is worth paying attention to. Ford’s electric SUV, the Ford Electric, launched in 2021, was once highly anticipated, but its sales failed to meet expectations. In 2024, Ford’s electric sales were only 999 units, and in the first four months of 2025, sales were only 30 units. This phenomenon reflects that Ford’s competitiveness in the field of new energy vehicles still needs to be improved.
In sharp contrast, Changan Ford has performed relatively well in the family sedan and SUV markets. Although Changan Ford’s sales are also declining, its main fuel vehicles still have a place in the market. With the continuous increase in the penetration rate of new energy vehicles, Changan Ford urgently needs to speed up product upgrades to adapt to changes in market demand.
In the competition of new energy vehicles, Ford faces strong pressure from domestic independent brands. Domestic brands such as Great Wall and BYD have quickly occupied the market share with their technological advantages and market acumen. If Ford wants to make a comeback in this field, it must increase its investment in the research and development of new energy vehicles and improve its product competitiveness.
Export business potential and challenges
Although Ford’s sales in the Chinese market are facing challenges, its export business has shown strong growth momentum. Data shows that Ford China exported nearly 170,000 vehicles in 2024, an increase of more than 60% year-on-year. This achievement not only brought considerable profits to Ford, but also provided support for its layout in the global market.
Ford China’s export business is mainly focused on fuel vehicles and electric vehicles. Jim Farley said at the earnings conference: “Exporting fuel vehicles and electric vehicles from China is very profitable.” This strategy enables Ford to maintain factory capacity utilization while alleviating the pressure of declining sales in the Chinese market. However, Ford’s export business also faces challenges from the tariff war, especially models exported to North America will be affected.
In the future, Ford may continue to use China as an export hub to produce vehicles and export them to other regions. This strategy will not only help maintain the plant’s capacity utilization, but also provide new opportunities for Ford to compete in the global market. However, Ford’s layout in the field of new energy vehicles still needs to be accelerated to cope with the increasingly fierce market competition.
In the era of rapid development of new energy vehicles, Ford’s transformation in the Chinese market is full of challenges and opportunities. Through asset-light operation, integrated sales channels and active expansion of export business, Ford is expected to gain a place in the future market competition. However, facing strong pressure from domestic independent brands, Ford must increase investment in the research and development of new energy vehicles and enhance product competitiveness to achieve sustainable development. Only through continuous innovation and adjustment can Ford usher in new growth opportunities in the Chinese market.
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Post time: Jul-02-2025