Ford is driving into the big leads of car manufacturing in China. Last year their sales surged more than 50% and they are off to a great start in 2014. Two things have propelled the company’s surge:
-Chinese customers began to shun Japanese cars in 2012 over a heated territorial dispute between Beijing and Tokyo over ownership of an island chain
-a $5 billion investment in Chinese car and SUV production began to bear fruit.
After years of trailing behind rivals GMC and VW the Ford Focus is now the top selling nameplate in China.While, Focus sized cars are still the most popular choice of car, Ford’s SUVs are the source of its market-share grab. Ford has had a rocky setting in China in the past, but this new gain may cement them as a power in the Middle Kingdom.
Source: WSJ
With China’s rising consumer class, it seems to be a wise move for Ford to attempt to capitalize on this trend. This, coupled with the fact that Ford is focusing on increase fuel efficiency could mean high future profits in the Chinese market.