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Sales are not good, Ford Electric Horse Independent Company or cancel?

2024-03-02 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)06/09 Report--

According to "Interface News" and other media reports, Ford China is undergoing organizational restructuring. The Ford Electric Horse team, which was originally separated from Ford Electric Mach Technology, will be integrated and returned to Ford China, and the independent electric car company will be cancelled later. "because the sales of electric horses are so poor, independent Ford electric horses cannot be responsible for their own profits and losses," said people familiar with the matter. " The restructuring will involve more than 2000 employees and is expected to be completed in July.

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In addition, Caijing pointed out in a report that Ford Electric Horse originally had more than 50 dealers in China, with 5-6 employees in each store, but since March this year, there has been an intensive trend of withdrawing the net, and the number of dealers has shrunk to about 30. Many stores have only 2-3 employees, and there is a serious loss of staff in front-line stores because of low sales and no sales commission. In order to save Ford Electric Horse business, Ford China started negotiations with Changan Ford and Changan Automobile, hoping that the sales channels and marketing system personnel of Ford Electric Horse would be fully integrated into Changan Ford, but Changan Ford refused to fully accept the personnel of Ford Electric Horse. Ford China insider: "because the human issue is very difficult to talk about." The current plan is for some people to fend for themselves, some whose contracts are not renewed when their contracts expire, and some old Ford to change jobs to Lincoln, Jiangling Ford and Changan Ford. "

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In response to the news that the electric horse team will integrate "return" to Ford China, Ford China said: "We do not have any plans to terminate Ford Electric Mach's business operations." Ford China said that Ford will continue to unswervingly accelerate the electrification transformation in China, and will work with partners to improve Ford's electric vehicle business by expanding sales channels and providing better and more convenient services to consumers.

Data show that Ford Electric Mach Technology Co., Ltd. was established in April 2020, formerly known as Ford Electric Horse Division and Ford Nanjing Research and Development Center of some functional departments. The registered capital of the company is US $665 million and the paid-in capital is US $300 million. At present, the company is still in existence. The ownership structure chart shows that the company is jointly owned by Ford Technology (China) Holdings and Nanjing Jiangning Economic Development Information Industry Development Co., Ltd., with a shareholding ratio of 81.2% and 18.8% respectively.

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In fact, Ford's road to new energy transformation in China is not smooth. In September 2022, Ford Electric Mach Technology was officially put into operation. Ford China has high hopes for this independent company to operate its electric vehicle business in China and accelerate the electrification transformation in China. However, Ford Electric Horse failed to stir up waves in the car market after its listing.

In April 2021, Ford's pure electric SUV-- Ford Electric Horse officially opened for pre-sale in the Chinese market, with a price range of 275900 yuan to 389900 yuan. Ford Electric Horse is the first pure electric model of Ford Electric vehicle Division, which is produced by Changan Ford and is based on Ford's new high-performance pure electric platform. On October 11, 2021, Ford Mustang Mach-E GT models were launched synchronously around the world, and in December 2021, Ford Electric Horse officially opened in China.

Up to now, Ford has only one pure electric model of Ford Electric Horse in China. Ford Electric Horse has launched three models with a price range of 24.99-369900 yuan, which mainly competes with Tesla Model Y (price range 26.39-363900 yuan) after listing. Although Ford lowered the price of some electric horse models by 20000 yuan to 28000 yuan in October last year, the car does not have a strong sense of being on the market in China. According to the Federation of passengers, Ford Electric Horse sold only 4860 vehicles in 2022.

In addition, previous data showed that Ford's electric vehicles and digital business unit, Ford Model e, lost $700 million before interest and tax in the first three months of 2023, which means Ford lost $58000 (about 401000 yuan) on every electric car it sold in the first three months of this year based on its total sales of 12000 vehicles. From this point of view, the adjustment of Ford's integration of Ford Electric Mach into Ford China may also be expected.

On May 10 this year, there was news in the market that Ford China began to lay off staff, with as many as 1300 layoffs, and the employees will be compensated in accordance with Ninten3. In response, Ford China responded: "China is a vital market for Ford, and our commitment to promoting the sustainable development of our business in China remains unchanged." At the same time, Ford China said it was building a more streamlined and flexible organizational structure, devoting resources to core businesses with advantages, and striving to achieve its business goals in China.

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The industry believes that Ford's layoffs in China may also be related to its current poor sales performance in China and its adjustment of strategy in China. For the whole of 2022, Ford's sales in China fell 33.5 per cent to 496000 vehicles from a year earlier, while market share fell 0.3 per cent to 2.1 per cent year on year, with a loss before interest and tax of $572 million, according to the data. In this context, Ford China began to develop a new plan to reduce investment to improve profitability.

The move comes after Ford announced in February that it would cut 3800 jobs over the next three years in Europe, including Germany and the UK, and engineers and some managers. Ford hopes to cut costs and remain competitive in the electric car market. In short, layoffs are part of Ford's efforts to reduce costs as it promotes electrification.

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Ford did not disclose sales and financial results in China in the first quarter of this year, but the sales performance of Anford, the head of its joint venture car company, could not analyze Ford's position in the auto market. Data show that Changan Ford's cumulative sales in the first quarter of this year were 44800 vehicles, down 25.68 per cent from a year earlier. Changan Automobile said it was looking for a new model to solve the current problems faced by Changan Ford, that is, to "create a new model of joint venture and cooperation."

At present, in order to quickly achieve the transformation of electrification, Ford is constantly laying off staff and cutting costs, while increasing the capital investment of electrification. According to the plan, Ford will invest more than $50 billion in electric vehicles by 2026, when it will produce more than 2 million electric vehicles, and by 2030, half of Ford's global sales will be electric vehicles.

According to the latest retail data of the Federation of passengers, from January to May 2023, Ford Electric Horse sales were 1050, 84,283,332,249 respectively, with a cumulative sales of only 1998 vehicles, which is a far cry from the current mainstream new energy electric vehicles in the car market. For comparison, cumulative Model Y sales from January to May 2023 were 152461. It should be noted that Ford China's organizational structure adjustment, re-integration does not mean that Ford Electric Horse will withdraw from China, after that, Ford Electric Horse will continue to be produced by Changan Ford.

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