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Here's Ford's Plan to Build Lincolns in China by 2019
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Lincoln Motor Co., a subsidiary of Ford Motor Co. (F - Free Report) , plans to begin manufacturing their luxury SUVs in China by late 2019. The move into the world’s largest auto market aims to compete with their German and U.S. rivals who have already stepped into the Chinese auto market.
The Michigan-based automaker will operate from an existing assembly plant with joint venture partner Changan Automobile Group. The assembly plant will be in the city of Chongqing, located in central China. By localizing production, Ford avoids import tax and will be able to compete in prices against rivals in the Chinese market.
The import tax pushes the prices of entry-level luxury cars into the range of the high-end models that are manufactured locally. China imposes 25% in customs taxes on imported vehicles and also requires foreign automakers to manufactures cars with a local Chinese venture partner.
Sales for the imported Linolns in Chinas had tripled from 33,000 year-over-year in 2016.. It made sense for Lincoln to localize production to compete against rivals like General Motors Co. (GM - Free Report) , who opened up a 160,000-unit Cadillac plant in Shanghai last year.
GM’s China sales grew 7% in 2016, and Cadillac sales went up by 46%. Furthermore, in January, more Cadillacs were sold in China than in the U.S. for the first time in the company’s history.
Ford’s plan is to build a new sport utility vehicle (SUV) model that suits the Chinese’s taste and growing demand of SUVs. The China Passenger Car Association projected a growing demand in SUVs due to a combination of rising incomes, lower oil prices and policies allowing more children. These factors sparked the needs of more spacious transportation in the world’s largest market.
The China Association of Automobile Manufacturers reported in 2016, that SUV sales were up 44.6% compared to last year. Just in the month of January, SUV sales went up another 10.5% compared with the same period a year ago.
The company looks to continue importing Lincoln vehicles from North America, as imported cars are considered as a status symbol in China.
Ford’s February sales report posted record SUV sales with a total of 68, 820 vehicles sold. The amount of vehicles sold shows a 6% increase compared to a year ago. The company is trading at $12.55 per share with a slight upwards movement of 0.1%.
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Here's Ford's Plan to Build Lincolns in China by 2019
Lincoln Motor Co., a subsidiary of Ford Motor Co. (F - Free Report) , plans to begin manufacturing their luxury SUVs in China by late 2019. The move into the world’s largest auto market aims to compete with their German and U.S. rivals who have already stepped into the Chinese auto market.
The Michigan-based automaker will operate from an existing assembly plant with joint venture partner Changan Automobile Group. The assembly plant will be in the city of Chongqing, located in central China. By localizing production, Ford avoids import tax and will be able to compete in prices against rivals in the Chinese market.
The import tax pushes the prices of entry-level luxury cars into the range of the high-end models that are manufactured locally. China imposes 25% in customs taxes on imported vehicles and also requires foreign automakers to manufactures cars with a local Chinese venture partner.
Sales for the imported Linolns in Chinas had tripled from 33,000 year-over-year in 2016.. It made sense for Lincoln to localize production to compete against rivals like General Motors Co. (GM - Free Report) , who opened up a 160,000-unit Cadillac plant in Shanghai last year.
GM’s China sales grew 7% in 2016, and Cadillac sales went up by 46%. Furthermore, in January, more Cadillacs were sold in China than in the U.S. for the first time in the company’s history.
Ford’s plan is to build a new sport utility vehicle (SUV) model that suits the Chinese’s taste and growing demand of SUVs. The China Passenger Car Association projected a growing demand in SUVs due to a combination of rising incomes, lower oil prices and policies allowing more children. These factors sparked the needs of more spacious transportation in the world’s largest market.
The China Association of Automobile Manufacturers reported in 2016, that SUV sales were up 44.6% compared to last year. Just in the month of January, SUV sales went up another 10.5% compared with the same period a year ago.
The company looks to continue importing Lincoln vehicles from North America, as imported cars are considered as a status symbol in China.
Ford’s February sales report posted record SUV sales with a total of 68, 820 vehicles sold. The amount of vehicles sold shows a 6% increase compared to a year ago. The company is trading at $12.55 per share with a slight upwards movement of 0.1%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>