AutoBeta(AutoBeta.net)09/23 Report--

According to Tianyan, Changan Ford New Energy Automobile Technology Co., Ltd. was established on September 20, with a registered capital of 250 million yuan and the legal representative is Yang Dayong. The scope of business includes auto parts retail, minibus rental services, new energy vehicle sales, wearable smart equipment sales, battery sales and so on.

According to shareholder information, Changan Ford New Energy Automobile Technology Co., Ltd. is jointly owned by Changan Automobile and Changan Ford, of which Changan Automobile holds 40% and Changan Ford holds 60%. It is worth noting that as Changan Motor holds a 50% stake in Changan Ford, Jishang Changan Automobile actually owns 70% of the equity.

To save Ford's defeat in the Chinese electric market. In January 2021, Ford announced that the Ford Electric Horse would be produced at the Changan Ford plant and went on sale in December of the same year, with competitors targeting Tesla Model Y. However, sales of Ford electric horses in China are mediocre, delivering a total of 4860 vehicles in 2022 and only 1182 in the first half of 2023.

On August 1, Changan Ford announced that it would formally take over the operation of Ford Electric Horse in the Chinese market starting from today in accordance with Ford's strategic transformation and business adjustment in the Chinese market. After taking over, Changan Ford will upgrade Qualcomm's third-generation 8155 chips for all existing Ford electric horse owners. Although Ford Electric Horse fills the gap of Ford in the pure electricity market, the fundamental problems such as overcapacity and weak transformation of Changan Ford remain to be solved.

In 2022, Changan Ford sold a total of 251000 vehicles, down 17.61% from a year earlier. It is understood that this sales performance is only higher than the 184000 vehicles in 2019, making Changan Ford the second lowest in 10 years. The latest sales figures show that Changan Ford totaled 119000 vehicles from January to July 2023, down 12.58 per cent from a year earlier.

According to the financial report, the operating income of Changan Ford from 2018 to 2021 is 49.754 billion yuan, 28.096 billion yuan, 49.248 billion yuan and 61.765 billion yuan respectively, and the net profit is-792 million yuan,-3.85 billion yuan, 15.75 million yuan and 2.284 billion yuan respectively. In 2022, Changan Ford has an operating income of 51.067 billion yuan and a net profit of-2.449 billion yuan.

Entering 2023, the life of Changan Ford is not easy. In mid-to-late May, a number of domestic media reported that Changan Ford cut its production capacity by one million due to a decline in sales, and its current production capacity has plummeted to 670000 vehicles. In addition, Changan Ford has also been exposed layoffs, layoffs of more than 1300 people, will be compensated in accordance with Ninten3. In response, Ford responded that it was building a more streamlined and flexible organizational structure to devote resources to core businesses with advantages.

In contrast, Changan Automobile's new energy brands perform better, among which deep blue cars are the most dependent on electrification transformation at this stage. It is understood that Deep Blue's first model, SL03, was delivered in August 2022, covering hybrid and pure electric vehicles, with a total delivery of 29316 vehicles in the first half of the year.

The Changan brand also launched a new product series-Qiyuan. The first model, Qiyuan A07, was pre-sold on September 12. A total of five new models were launched with a pre-price range of 15.8-180000 yuan. The new car is based on the Changan EPA1 platform and provides hybrid and pure electric versions for consumers to choose from. In addition, Changan Automobile also launched the high-end brand Avita with Ningde era and Huawei. Avita 11 and Avita 12 are currently planned, with models aimed at the high-end market of more than 300000 yuan, but the market performance is not satisfactory for the time being.

From the perspective of equity, Changan Automobile has more say in the new joint venture company, and with its advantages in the new energy vehicle market, Changan Automobile may be able to lead Changan Ford to the right track in electrification transformation, but the specific effect still needs time to test.

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