Showing posts with label Lincoln. Show all posts
Showing posts with label Lincoln. Show all posts

10.02.2014

林肯重返中国步伐缓慢 公布两款车预售价 (Lincoln Comes to China with Two Models)

Jiemian.com, September 25, 2014



曾服务过10任美国总统的林肯牌轿车早在1925年就被美国贸易商贩卖到当时亚洲最繁华的城市上海,但在近一个世纪后,重返中国市场的林肯会发现在向中国新兴富裕阶层推销高档车时,历史声望恐怕帮不上忙。

林肯近日公布了其重返中国的两款车的预售价和上市时间。将于10月23日上市的林肯MKC越野车的预售价为人民币35万至45万元,MKZ轿车为32至40万元。界面记者采访的多名汽车业分析师都认为这一定价策略与凯迪拉克相似,略低于占据主导地位的奥迪、宝马、奔驰,符合市场预期。

LMC汽车市场咨询公司总经理曾志凌表示,这个定价策略是林肯作为迟到的小众进口车所做的尝试,林肯到底能走多远还不好说。

距离2012年林肯宣布重返中国已经过去两年、新车上市还有一个月,官方网站上显示林肯正在北京、上海、广州、重庆等34个城市招募经销商。10月30日,林肯将在北京、上海和杭州三个城市率先开业3家经销店。林肯还在多个城市设立体验中心,邀请潜在车主登门体验,为即将开售的MKZ和MKC造势。

已经拥有一辆奥迪Q5的胡建志是林肯瞄准的目标消费者——林肯将他们称为“更加年轻的中国新贵”。胡建志前不久受邀参加了成都站的体验活动,但随后放弃购买林肯中型越野车MKC转而选择了奔驰,理由是担心二手车保值和售后服务。因此,潜在车主在购买林肯汽车时会与奥迪、宝马和奔驰进行比较,并产生胡建志那样的心理斗争。

中国车主对林肯的印象还停留在“加长礼宾车”、“总统车”上,林肯希望利用这些久远的记忆,并用个性化服务、宣传历史上的辉煌来突出品牌独特之处。

林肯市场营销副总经理徐佩文告诉界面记者:“这个群体对于品牌的需求不再是彰显自己的地位,而是彰显自己的品位,因此,深入的品牌体验变得更加重要。”

为产品和品牌预热而设立的体验中心——“林肯空间”透露出林肯将会采用的一些做法,例如进门处设有暖棕色的幕墙,还有一个专门的图像展示区宣传林肯品牌以及福特汽车创始人的历史事迹,顾客在店内可以享用茶道服务,临走时得到一个用林肯座椅相同皮料制作的行李牌。

徐佩文认为林肯能够凭借这些服务在豪华车市场上独树一帜。确实有顾客在参观过体验中心后对服务和环境印象深刻,但这无法改变一个事实——大多数购车者对林肯实在缺乏了解。林肯已有六年未在中国开展业务,2005年至2008年期间也只是以进口方式销售少量过时车型。
曾志凌表示,林肯已经有10年时间没有什么产品给中国人留下印象,几乎是一个全新的品牌,很多事情都要从头开始,而最困难的任务就是重塑品牌。他说:“林肯既小众又没有国产,没有太多先例可以参考。Jeep在中国卖得好是因为它知名度比较高,从1980年代就开始在中国生产。”
一位曾申请过林肯代理资格的经销商称:“有些人提起林肯,都不知道它是汽车。”

林肯缺席的这六年是中国豪华车市场超高速增长期,富人和新兴中产阶级面对着越来越多的想要为他们提供高档产品和服务的公司,其中不乏一些已经深入人心的汽车品牌。

新华信咨询公司汽车分析师金永生对依靠独特服务来赢得消费者的做法也持怀疑态度。“如果产品不能吸引消费者,单靠服务是没有意义的。服务本身很难创新,林肯现在推出的只是新的概念和称谓。”金永生还提到,林肯在产品上市前应该多多宣传技术上的独特之处。

中国消费者对林肯缺乏了解还给它带来一些额外的挑战,比如在寻找经销商方面。

眼下豪华品牌都在中国争夺有资金实力和管理经验的经销商,同时销售汽车的利润却在普遍下滑。

林肯去年邀请北京惠通嘉华投资有限公司到二、三线城市开店,遭到了拒绝。惠通嘉华是中国一家以经营捷豹、路虎和梅赛德斯-奔驰等豪华汽车品牌的经销商,其位于北京市建国路的路虎4S店是路虎在中国销量最大的4s店之一。

惠通嘉华一位不愿透露姓名的负责人表示,以林肯目前的设计风格、定价和品牌,只能吸引到25至40岁的小众群体,不看好短期赢利前景,只有在一线城市开店才能将风险降低到可以接受的程度。IHS轻型车销量预测经理林怀滨预测,林肯进入中国第一年的销量会很少。

林肯最终多是选择像福瑞汽车这样代理过福特品牌的经销商,福瑞汽车是长安福特在中国最大的经销商,由林肯的母公司福特与中国长安汽车集团共同投资。中国汽车流通协会副秘书长罗磊表示,让销售大众化产品的经销商代理豪华品牌不意味着会出问题。“只要它按照豪华品牌的标准去做,接受培训,或者从其他豪华品牌那里引入人才。”

林肯计划在2016年将经销商扩大至60家,是首批开业的3家经销店数量的20倍。林肯称其首批开业的店面数量比原计划多出两家,但这一比较是以林肯截至今年年底的8家经销店为基础。林肯中国销售副总经理高瑾馨在今年北京车展前离职,这是新车上市前最重要的宣传期。

外界猜测林肯高瑾馨的离职与经销商网络发展不顺利有关,林肯中国和高瑾馨则称离职是出于个人原因。

汽车业分析人士认为重返中国是林肯唯一的选择。麦肯锡在《中国高档汽车市场展望》中预测,到2016年中国豪华车销量将有望超过美国,在2020年之前中国豪华车市场仍有能力维持12%的年增长幅度。

前福特CEO艾伦·穆拉利(Alan Mulally)曾告诉媒体,林肯品牌发展重点锁定中、美两国,暂不考虑欧洲。林肯也已经将国产设为长期目标,但需要先以进口方式达到一定销量,较为激进的做法是达到3万辆便开始筹备国产事宜。

美国另一豪华品牌凯迪拉克经过9年的努力,目前中国豪华车市场占有率大约为4%,远远落后于奥迪、宝马和奔驰三大德系品牌,而林肯刚刚走出自己的历史低谷,在品牌复兴之路上还要落后于凯迪拉克,主力车型新MKC在美国本土市场也不太引人关注,7月份的销量只有1534辆。

林肯计划到2016年向中国市场投放5款车型。在MKZ和MKC之后,将继续推出一款中大型SUV、一款全尺寸四门轿车和一款大型SUV——林肯领航员。目前在中国市场上销售的豪华车型已超过 120款,主流豪华车品牌都在扩大产品种类和争夺市场份额。

前克莱斯勒东北亚负责人、高风咨询公司董事总经理Bill Russo称,中国豪华车市场的服务不够好,未来5年销量将会翻倍,这意味像林肯这样的豪华品牌仍有进入的机会,充分借助福特的技术和本土化经验,避免设计张扬能够提高成功的几率,但最终成功与否依赖于林肯如何讲述自己的品牌故事。

“并不是很多人知道林肯这个品牌。”他说,“在产品上市前它要花更多的时间让大家了解林肯代表什么。”

11.14.2012

WTO Intervenes in U.S. Pushback Against China Tariffs

Ward's Auto, November 12, 2012

Click here to read the article at wardsauto.com

An analyst says the duties are meant to keep imports of “posh” Western vehicles at bay while China moves beyond small-car production and develops midsize and large cars.





















A new trade dispute at the World Trade Organization between the U.S. and China over protective duties could foreshadow a battle in a long war for supremacy in global auto markets, an industry expert says.
Peter Cooke, a professor of automotive management at the University of Buckingham in the U.K., discusses the scenario after the WTO’s disputes-settlement body established a panel to adjudicate claims China is imposing illegal duties on U.S. vehicles exported to the country.
Cooke predicts a tough fight from Beijing to maintain the duties, which he characterizes as both punishing and strategic.
According to the U.S. Trade Representative (USTR) office, the Chinese government in December 2011 issued both anti-dumping and countervailing tariffs on U.S.-built cars and SUVs with engine capacity of 2.5L or larger.
The USTR reports the anti-dumping duties are 21.5%, with lower rates for selected car companies ranging from 2% to 8.9%, and countervailing tariffs of 12.9%, with lower rates from between 6.2% and 12.9%. These are paid on top of China’s existing 25% duties on U.S. auto imports.
Cooke tells WardsAuto.com China is playing a “long game” with the aim of giving its auto sector time to develop midsize- and large-car capacity, building from its existing strength in the small- and budget-car sector.
“This is part of the new protectionism” spurred by China’s assessment of its local market, he says.
“Driving largely Western cars cannot be good for the pride of China – what about their own domestic brands?” the analyst says. In a market in which “posh” cars are imported, “the buyers love it, but if you are the government, you won’t.”
Chinese leaders “are flexing their industrial muscles, and they are looking at what is one of the most profitable sectors of the market and (saying), ‘We want some of that.’”
The analyst adds that China’s recent economic slowdown likely will make Beijing’s newly appointed political leaders more aggressive in fighting the WTO case.
The duties China is defending are intended to compensate domestic auto makers for alleged U.S. government subsidies to American car companies, and to punish those manufacturers for alleged dumping in China – selling at reduced prices cars that are more expensive at home.
Both practices could violate WTO rules. The panel will decide whether China’s claims are valid and, if so, whether they are in fact illegal.
The U.S. government is confident it will win the case. American diplomats fired a broadside at their Chinese counterparts during an Oct. 22 meeting in Geneva of the WTO dispute-settlement body that formed the panel to judge the countries’ conflicting claims.
Noting attempts to resolve the dispute through negotiations held with China since July have been unsuccessful, a U.S. statement claims China has “breached a number of its obligations under the (WTO) General Agreement on Tariffs and Trade, the antidumping agreement and the subsidies agreement.”
Several Chinese auto analysts contacted by WardsAuto suggest the U.S. move against China’s measures was timed to make President Obama appear tough on China during the run-up to his re-election.
They also suggest China’s tough stance at least is partly motivated by wanting to counter U.S. complaints to the WTO about Chinese promotion of exports such as clothing. The U.S. already has raised concerns about Chinese tire-import controls.
China’s higher duties are a way of “rattling the saber” over sales of U.S.-built SUVs in the country, says Bill Russo, senior adviser at global consulting firm Booz & Company’s Beijing office.
The tariffs “generally do not have a widespread impact for manufacturers who have production capacity to make cars in China,” he says. The effect is greater on “those who are importing vehicles…This may selectively target car makers like Chrysler who no longer produce vehicles in China.”
Russo also says the levies may be meant to “weaken premium brands of General Motorsand Ford (Cadillac and Lincoln, respectively) which are exported to China.”
While GM stands to gain if the WTO panel rules against China, the auto maker already has been prospering from its manufacturing operations in the country.
According to the China Association of Automobile Manufacturers, GM says imported vehicles account for less than 0.5% of its Chinese sales. 
Other U.S. auto makers also could benefit if America prevails in the tariff dispute and ultimately convinces China that freer trade is in everyone’s interests, predicts Tomas Hult, director of the International Business Center at Michigan State University.
He argues if China abolished its existing duties and harmonized its tariffs with the U.S. at 2.5%, then GM alone could sell 9 million cars a year in China, up from 2.5 million today.
“With the exception of the last year, the Chinese auto market has grown tremendously in the last decade, mainly due to the population growth of China’s middle class,” he says.
– with Leah Germain and Mark Gao in Beijing

9.04.2012

Lincoln rolling into luxury market

China Daily, September 3, 2012


Ford's premium marque retooling for 2014 sales
While struggling to defend its territory from German and Japanese auto giants in its homemarketUS carmaker Ford Motor Corp's luxury brand Lincoln is looking for a bright spot inChina.
The carmaker announced last week in Beijing that it will export its Lincoln vehicles to China inthe last half of 2014. Dealer recruitment will begin in the fourth quarter this yearit said.
"With the reinvention of Lincoln going on in North Americawe now feel the time is right," said Joe Hinrichspresident of Ford Asia Pacific and Africa at a media event in Beijing on August28, when the carmaker also showcased the Lincoln MKZ concept car.
Debuted at the Detroit Auto Show in Januarythe mid-sized four-door sedan with a bold wing-shaped grille and push-button transmission is expected to be the start of Lincoln's resurgenceafter years of sluggish sales.
Its mass-produced version will go on sale in the US soonpart of Lincoln's plan to introduceseven new and significantly retooled models before the end of 2014.
"During the last couple of years while our new products were being developedwe have been incorporating Chinese preferences and testing the vehicles with customers in China," Hinrichs said.
The company declined to specify what models it plans to bring to Chinabut noted that it will offer a powertrain that meets local demand such as the 2-liter EcoBoost engine.
Though Ford will focus on exports of Lincoln to China at the beginningthe company hasn'ruled out the possibility to local manufacturing.
Hinrichs said that if demand is strong enoughthe company will consider local manufacturing.
Lincoln's current annual global sales total about 100,000 unitsthe majority of them in the US,with small number exported to the Middle EastSouth Korea and Mexicoaccording to JimFarleyFord's vice-president for global marketingsales and service.
'First major market'
"China will be our first major market for Lincoln outside the US," he said.
Last year China surpassed Germany to become the second-largest market for premium cars with delivery of about 980,000 units.
The number is likely to increase to 1.2 million this yeara 22 percent increase over 2011, well ahead of the growth in the mainstream marketaccording to LMC Automotive.
China is now the biggest overseas market for luxury carmakers AudiBMWRolls Royce,LamborghiniBentley and among the top three markets for Jaguar Land RoverPorsche,Mercedes-Benz and Ferrari.
And the long-term picture looks promisingStatistics provided by Ford show that China's luxury vehicle market will grow to about 2.7 million units by 2020, accounting for nearly 9 percent ofthe overall car marketup from about 6 percent today.
The significant size and stable growth in the next few years is the main reason that Forddecided to bring Lincoln to Chinaanalysts said.
"Of course Lincoln should come to China," said Zhang Yudirector of industry consultancy Automotive Foresight (ShanghaiCo Ltd.
"The country may surpass the US to become the world's biggest luxury car market in five yearsand every luxury brand should certainly come here," Zhang said.
Bill Russosenior advisor of Booz & Coagreednoting that "global brands of global companies like Ford need to be introduced to the largest automotive market in the world".
China is now the largest auto market globally in unit sales.
He said that having a premium brand on the market will also "help upgrade the image of Ford Motor Co in the eyes of the status-conscious Chinese consumers".
Fierce competition
Yet competition is getting increasingly fierce as the dominant top three German brands AudiBMW and Mercedes-Benz have about 80 percent of the country's premium car segment andcontinue to aggressively expanding their local production capacities.
British luxury carmaker Jaguar Land Rover and Nissan's Infiniti have both announced plans to produce cars in China and will probably have their local plants ready by 2014, when Lincoln just joins the lineup in the crowded market.
Another US luxury brandCadillac from General Motors Copreviously only made the SLS in Chinais moving to produce more new models locally at the end of the year as part of its plan to boost sales in the nation.
But analysts still believe the growing market itself will help offset the challenges posed by increasing competition.
Even with the planned expansion by global luxury carmakersthere is still an opportunity to carve out a niche due to continued growth in the number of affluent Chinese consumersthough it won't be easysaid Russo.
"Having the localized capabilities to adapt Lincoln branded vehicles to the local market will be critical success factor," he said.
Zhang from Automotive Foresight is optimistic. "Lincoln has started to redesign its product lineup and its new vehicles seem to be in line with the aesthetics of Chinese customers."
"The brand also has long history and Chinese consumer love brands with heritage," Zhang said.

8.30.2012

福特宣布林肯品牌将进入中国

China Daily, August 28, 2012



[提要]  北京时间8月28日下午消息,据彭博报道,在华销量落后于通用和大众的福特将推出豪华汽车品牌林肯,以作为该公司半个世纪来最大扩张计划的部分内容。福特今日公布声明称,该豪华汽车品牌将于2014年下半年登陆中国,公司将于今年第四季度为该品牌汽车招募经销商。

北京时间8月28日下午消息,据彭博报道,在华销量落后于通用和大众的福特将推出豪华汽车品牌林肯,以作为该公司半个世纪来最大扩张计划的部分内容。

福特今日公布声明称,该豪华汽车品牌将于2014年下半年登陆中国,公司将于今年第四季度为该品牌汽车招募经销商。

福特继通用后加大在中国豪华车市场的竞争力度,研究机构IHS预测该市场规模将在这个十年末前翻倍并超过美国。大众的奥迪、戴姆勒集团( Daimler AG)的奔驰和宝马集团(Bayerische Motoren Werke AG,BMW)的宝马目前处于主导地位,它们占到中国高端汽车销量的四分之三强。

Booz& Co驻北京高级顾问Bill Russo称:“将豪华品牌引入中国是一个大胆的决定,但也是一个必要的决定。如果你是一家品牌遍布全球的世界性公司,你必须在中国推出全球性品牌。

8.29.2012

Ford eyes China's wealthy drivers with coastal plant

Reuters,  August 29, 2012




By Deepa Seetharaman
HANGZHOU, China | Wed Aug 29, 2012 3:50pm IST
(Reuters) - Ford Motor Co (F.N) and its Chinese partner will begin building its first factory on China's coast, where the U.S. automaker can easily access the country's growing number of affluent buyers.
The $760 million factory is one of five Ford is building to cement its place in the world's largest auto market. Ford is also building a third assembly plant at its manufacturing hub in the central Chinese city of Chongqing.
Building vehicles in Hangzhou - a city of more than 6 million people to the south of Shanghai - draws Ford closer to China's wealthier population along the coast. It also provides Ford with an accessible port so it can export vehicles in the future, although Ford said it is now focused on building cars for the Chinese market.
"Hangzhou is really critical because of the market that it serves, and it diversifies our operations," Chief Executive Alan Mulally said after a groundbreaking event in Hangzhou on Wednesday. "The customer base here is fantastic."
Since 2006, Ford has poured nearly $5 billion into China with the aim of doubling capacity, employees and dealers by 2015. The plant in Hangzhou will be able to build 250,000 vehicles when it opens in three years.
GRAPHIC: Ford in China r.reuters.com/gek32t
LINCOLN LUXURY
Ford is the latest in a long list of automakers vying to launch or expand top-tier brands in China, where luxury car sales are expected to surpass those in the United States within 8 years. It plans to bring its Lincoln brand to China by 2014.
At an event at a converted Buddhist temple in Beijing on Tuesday, Ford executives said Lincoln could win over buyers partly by drawing on its legacy of building iconic cars like the Zephyr and Continental. But they also said China represented a rare chance for Lincoln to reinvent itself and skirt past its stale image, which has hurt sales in the United States.
"We have a chance to be different here," Ford's global marketing chief Jim Farley said. "We see the opportunity in China for the first time to launch Lincoln from scratch. China could teach us things we could incorporate into the experience side in North America."
By offering a premium car with Lincoln, Ford could be more attractive to dealers, helping the company gain traction in the Chinese market, Booz & Co consultant Bill Russo said.
LOW-COST APPEAL, TOO
The U.S. automaker is also launching 15 Ford brand models to China by 2015. One of those will be a low-cost car to appeal to buyers in China's fast-growing cities in the West. That model will rival the Chevrolet Sail, a car developed by General Motors (GM.N) and its Chinese partners that sells for less than $10,000.
Earlier this week, Mulally and other top executives marked another groundbreaking of the automaker's third assembly plant in Chongqing, home to Ford's massive manufacturing hub.
The complex is close to China's rapidly developing inland cities, where Ford is looking to win buyers with low-cost models.
Ford chose to build a factory along China's east coast after deciding to break up its three-way tie-up with Japan's Mazda Motor Corp (7261.T) and China's Changan Automobile Co Ltd.
China approved that restructuring, which carves up the joint venture assets between Mazda and Ford, earlier this week and it is now being reviewed by Chinese regulators. Mazda was not involved in selecting a site for the factory.
"This was a Changan Ford decision and a Changan Ford process," Joe Hinrichs, Ford's head of Asian and African operations, told Reuters.

Ford to keep expanding in China with addition of luxury Lincolns

The Los Angeles Times, August 28, 2012

Click here to read the article at latimes.com



BEIJING -- Ford Motor Co. continued its China blitz Tuesday, announcing that it would join the country's increasingly competitive luxury-car segment by introducing Lincoln automobiles to the Chinese market by 2014.

The announcement comes a day after Ford broke ground on its sixth factory in China, a $600-million plant in the southwestern city of Chongqing, and revealed that it had won initial regulatory approval to free itself from a local joint venture to manufacture cars with Mazda.

The developments allow the Dearborn, Mich., automaker to ramp up its ambitious expansion plans in China in an all-out effort to catch up with its far more popular foreign rivals, Volkswagen and General Motors Co.

"Lincoln is an important part of our plan, and introducing Lincoln in China marks the next step in our expansion in Asia and our commitment to serving customers in the luxury market," said Ford CEO Alan Mulally, who is touring China.

Ford is a latecomer to China but has committed about $5 billion since 2006 to build factories, grow its vehicle lineup and expand its dealership network in the world's second-largest economy.

Ford now sells an array of compact vehicles, sedans, SUVs and vans in China. Sales hit just over half a million units last year. Passenger vehicle sales have grown 7% this year, according to LMC Automotive, about 2% below the industry-wide rate of expansion.

With the introduction of Lincoln, the company hopes to tap a consumer segment that has been wildly successful for Audi, BMW and Mercedes-Benz. The three German automakers combine for almost 80% of the luxury-car market.

Unlike those brands, which manufacture in China, Ford will import the still-to-be-released Lincolns when they're officially launched here in the second half of 2014. A new Lincoln MKZ sedan is to be launched in the U.S. this year, part of a revitalization plan to introduce several new vehicles to the brand's lineup.

Ford said it's considering the needs of Chinese consumers in designing the new Lincoln vehicles. The company consulted luxury fashion labels Prada and Burberry because of their experience with China'srich. Spacious rear seats were deemed a must as luxury-car owners in China tend to be chauffeured. The company is also betting Lincoln's nearly 100-year-old history (one that includes many presidential limousines) will resonate in a country that prizes heritage brands.

"We have a chance to be different here," said Jim Farley, Ford's head of global marketing, "different from the Germans, the Asian brands, the other American brands, Cadillac. It’s a perfect time for Lincoln to come here because our DNA is different from all the other choices customers have."

Ford estimates that luxury-car sales in China will more than double to 2.7 million units by 2020, surpassing the U.S. as the world's top market. As a whole, China posted auto sales of 18.5 million last year, compared with 12.8 million in the U.S.

The strength of Chinese luxury auto sales today belies an industry-wide slowdown triggered by over-capacity, China's weakening economic growth and stricter car-ownership restrictions in some of the country's most congested cities, such as Beijing.

"The issue of over-capacity has really not affected the high end of the pyramid," said Bill Russo, president of the Synergistics auto consultancy in Beijing and Chrysler's former chief in China.

Still, Russo warned that Lincoln would have to find a way to stand out and justify its potentially hefty price tag with engineering performance and interior features.

"The degree of difficulty will be high," Russo said. "You have a very established set of competitors in a market with Chinese consumers who already equate luxury with a certain portfolio. Getting them to recognize Lincoln is going to be the main challenge."

Michael Dunne, the Indonesia-based head of auto consulting firm Dunne & Co., said Lincoln may benefit from being a new market entrant, especially at a time when Chinese car buyers may be looking for their second set of wheels.

"The Chinese like differentiation, something fresh and new," Dunne said. "Land Rover has done well in the SUV segment by essentially just being different. Mainly it's image. Someone might say, 'You have an Audi? Half my friends already have an Audi. I have a Lincoln now.'"

8.28.2012

Ford 's Lincoln Launch in China `Necessary,' Russo Says

Bloomberg TV, August 29, 2012

Bill Russo, Beijing-based president of Synergistics Ltd., talks about Ford Motor Co.'s introduction of the Lincoln luxury brand to China.  He also discusses the outlook for China's economic growth and its impact on the global auto industry with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)

Click here to view the video

Ford to Bring Lincoln Brand to China to Challenge Cadillac, BMW

Bloomberg News, August 28, 2012

Click here to read the article at bloomberg.com


Ford Motor Co. (F), lagging behind General Motors Co. (GM) and Volkswagen AG (VOW) in China, will add the Lincoln luxury brand to its lineup of vehicles in the country as part of the company’s biggest expansion push in half a century.
The luxury vehicles will be available in China in the second half of 2014, the Dearborn, Michigan-based carmaker said in a statement today. The company will begin recruiting dealers for the marque in the fourth quarter of this year.
Ford follows GM in stepping up efforts to compete in China’s luxury-vehicle market, a segment that researcher IHS Automotive forecasts will more than double and surpass the U.S. by the end of the decade. Volkswagen’s Audi, Bayerische Motoren Werke AG, and Daimler AG (DAI)’s Mercedes-Benz currently dominate, accounting for more than three-quarters of high-end cars sold in the country.
“The decision to bring a luxury brand to China is a bold decision but it’s a necessary decision,” said Bill Russo, a Beijing-based senior adviser at Booz & Co. “If you’re a global company with global brands you have to have global brands in China.”
Ford is counting on China to help revive growth of its premium nameplate, which has seen deliveries tumble more than 60 percent since their peak two decades ago. Ford, which in 1922 bought the brand named after former U.S. president Abraham Lincoln, plans to unleash seven new Lincoln models -- including the glass-roofed MKZ sedan -- by 2015 as it seeks to attract younger, wealthier customers.

‘Next Step’


“Lincoln in China marks the next step in our expansion in Asia and our commitment to serving customers in the luxury market,” Chief Executive Officer Alan Mulally said in a statement today. “Lincoln is an important part of our plan.”
Ford is introducing more models and building five factories in China, including a $760 million assembly plant in Hangzhou and a $600 million facility in Chongqing, to double its annual production capacity in the country to 1.2 million passenger vehicles. The expansion will help Ford increase global sales to about 8 million vehicles by mid-decade, up about 50 percent from 2010, according to the company.
The automaker has reason to expand. Ford only accounts for 2.4 percent of the country’s light-vehicle market, versus VW’s 19 percent and GM’s 10 percent, according to data from industry researcher LMC Automotive. Ford’s share of the more lucrative luxury segment is practically non-existent.
That’s because Audi, BMW, and Mercedes-Benz dominate by accounting for 76 percent of the Chinese luxury market, according to data from research firm LMC Automotive. The German automakers have succeeded partly because they tailored their cars to Chinese consumer preferences, selling long wheelbase versions of traditional sedans to cater to the need for more legroom in the backseat.

Cadillac Sales


GM, the biggest U.S. carmaker, is seeking to loosen their grip by renewing a push for its Cadillac vehicles in China. GM said in April it plans to bring in more Cadillac products, increase local production and sales outlets in China to boost sales five-fold and match U.S. deliveries by 2020.
At Ford, Mulally is seeking to revitalize the aging Lincoln, which counts 65-year-olds as its average buyers. The brand’s 85,643 vehicles sold in the U.S. last year was a 63 percent slide from its peak in 1990.

Chinese Consumers


Ford plans to target Chinese consumers with more “individual and personalised motor cars” and bank on Lincoln’s nearly 100-year-old heritage to expand sales, Jim Farley, the auto company’s global marketing chief, said in today’s statement. “In China, the emerging luxury buyers are younger and fast-changing, and they have a strong desire to understand and appreciate the heritage of a brand.”
Ford’s expansion in China will help the company more than double its market share in the country to 6 percent in the next five years and generate income to $1 billion by 2016 from about $137 million in 2011, according to estimates at CLSA Asia- Pacific Markets.
Ford’s Lincoln announcement comes a day after it said the National Development and Reform Commission approved Ford’s application to have a separate venture with Changan Automobile Co. instead of the current three-way ownership with Mazda, paving the way for the company to increase control of its China expansion and product rollouts.
To contact Bloomberg News staff for this story: Liza Lin in Shanghai at llin15@bloomberg.net; Stephen Engle in Beijing at sengle1@bloomberg.net
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net