Ford's strategic adjustment in the Chinese market has made concrete progress.

On October 10, Jiangling Ford Technology's new channel brand Ford Beyond Ford's first experience store in the world landed in Chongqing. This is an exclusive space designed by Ford's global team for outdoor off-road enthusiasts. The store displays the outdoor off-road product matrix composed of three classic models: Ford pickup Ranger, off-road SUV Bronco, and the new generation F-150 Raptor, as well as modified parts and outdoor off-road supplies.
During this year's Chengdu Auto Show, Jiangling Ford Technology released a new channel brand Ford Beyond. "As the automotive market becomes more competitive, we are accelerating the transformation of the Ford brand in global markets, leveraging the strengths of local partners and their insight and understanding of customer needs to build a more diversified and competitive dealer ecosystem." Elena Ford, chief dealer engagement officer at Ford Motor Company.
Liu Jisheng, president of Jiangling Ford Technology, told reporters during this year's Chengdu Auto Show: "We want to seize the opportunity of market expansion with Ford's 'fist' products." In the future, the Ford Ranger, together with the Ford Bronco and Ford F-150 Raptor, will strive to provide the most professional core product experience for Chinese users."
In Liu Jisheng's view, the current homogenization of automobile products in the Chinese market is very serious, so the market is also very "volume", but "volume" is not something Ford is good at.
"Ford has been using a relatively solid method to build cars and adhere to a lot of standards, which also leads to a relatively high cost stack and a relatively small advantage in market competition." Based on this, the company made a strategy adjustment. Rather than offering a product that is just one of many options for users in areas where we are not particularly good at, we bring unique products to users that they need and that we are good at. In the off-road category, the market offers fewer choices, and that's what Ford is good at." Liu Jisheng said.
According to the plan, Ford Beyond plans to build more than 200 experience stores in major cities and regions across the country from October this year. The original Jiangling Ford Technology's Family Space will continue to sell Leading Rui, Leading Yu and other urban exploration products. But in the future, Ford will fully integrate Jiangling Ford's channels.
It is worth noting that since the beginning of this year, the domestic hard off-road vehicle market is very hot, and has become a subdivision track for major brands to compete for layout. This is closely related to the rapid growth of the current hard off-road vehicle market in China. Public data show that in 2021, China's hard off-road vehicle market size is 67.267 billion yuan, of which the domestic and joint venture brand market size is 44.065 billion yuan, an increase of 17.22%; In 2022, the market size of hard off-road vehicles in China will reach 72.774 billion yuan, and the market share of domestic and joint venture brands will reach 62.22%.
In this context, in the face of the predictable market space and the increasingly fierce subdivision track, there are still many uncertainties about whether the newly launched Ford Crossroad can stand firm with the off-road gene.
In fact, based on the overall performance in China and changes in market demand, Ford's strategic layout ideas for the Chinese market have been adjusted. In May this year, Ford CEO Jim Farley said on Ford's first-quarter earnings call that Ford's strategy in China will change, and "we will conduct less investment, leaner, more focused business in China with higher returns." The new strategy will focus on its commercial vehicle business, electric vehicles and exports.
Behind the strategic adjustment, Ford has encountered certain difficulties in the Chinese market in recent years. Among them, Changan Ford sales continued to decline, despite taking a series of measures to accelerate product launch and iteration rhythm, but has not been able to return to the mainstream track. In addition, Ford Motor once proud of the "electric horse" business has also "broken" the Chinese market, had to adjust the business strategy, into the Changan Ford sales channel.
For Changan Ford, Ford has made corresponding adjustments. On September 20, Changan Automobile and Changan Ford jointly established Changan Ford New Energy, with a share ratio of 40% and 60% respectively. Since Changan Automobile holds 50% of Changan Ford, Changan Automobile actually owns 70% of the equity in the joint venture. On October 11, Changan Ford New Energy Vehicle Technology Co., Ltd. was quietly opened in Chongqing.
Ford's other joint venture in China, Jiangling Ford Technology, is doing well. Data show that in the first half of this year, the total sales of Jiangling Ford Technology at home and abroad reached 50,800 vehicles, an increase of 79%; Among them, sales in the domestic market continued to rise in the second quarter, an increase of 24%, and cumulative sales in the first half of the year increased by 21% compared with last year.
Under the new strategic thinking, the weight of Jiangling Ford Technology has also been improved accordingly. Industry insiders predict that in the Chinese market, Ford will likely rely more on the production of Jiangling Motors in the future, mainly because the latter focuses on the production and sales of commercial vehicles and other models. With the introduction of three "fist products" such as the pickup Ranger, the off-road SUV Bronco and the new-generation F-150 Raptor, Jiangling Ford Technology's strategic significance to Ford will become increasingly prominent.