[Exclusive] Ford Is Said to Merge Mustang EV Sales Channels in China With Those of Changan JV
Tang Liuyang
DATE:  Jun 09 2023
/ SOURCE:  Yicai
[Exclusive] Ford Is Said to Merge Mustang EV Sales Channels in China With Those of Changan JV [Exclusive] Ford Is Said to Merge Mustang EV Sales Channels in China With Those of Changan JV

(Yicai Global) June 9 -- A Chinese electric vehicle arm of Ford Motor, which produces Mustang-branded cars, intends to consolidate its sales channels with a local joint venture called Changan Ford Automobile to revitalize the dwindling distribution network, according to an insider.

Some sales staff of Ford Electric Mach Technologies will be moved to the JV with Changan Automobile, Yicai Global learned exclusively from an insider at the Chinese arm of the Michigan-headquartered company. Others may be pushed to leave voluntarily or their contracts will not be renewed.

The move is about the poor sales of Mustang Mach-E sport-utility vehicles. The above-mentioned insider said that Ford China negotiated with Changan Ford and Changan Automobile about integrating sales channels that have recently shrunk for the iconic marque in China but the JV rejected accepting all incoming workers.

Another measure that the American firm is taking to save Ford Mustang is developing products featuring Changan Automobile's new energy vehicle technologies, Yicai Global learned.

Ford China has denied rumors of alleged plans of shutting down FMet in the next quarter. "We don't have any plan to terminate FMet's business operations," the firm said to Yicai Global today. "We will steadfastly continue to accelerate electrification in China," Ford China said, adding that the company intends to work with its partners to improve the electric vehicle business via measures such as expanding sales channels.

The American carmaker used to dream big when entering the Chinese NEV market. Chen Anning, Ford China's former chief executive, was said to be working to float FMet shares in Hong Kong. The business unit, which has USD665 million of registered capital, was established by combining the marketing department of Ford Mustang and a part of Ford's research and development center in Nanjing in 2020.

However, sales of Mustang-branded cars have been low at just some hundreds of units per month since the Mustang Mach-E model began sales in China in April 2021. Just three Mustang cars were made in April, and sales tallied 33 units, according to data from the China Passenger Car Association. From January to April, some 60 units were sold.

The poor sales have resulted in a shrinking sales network as the number of Mustang dealers across China has dropped to around 30 from over 50, Yicai Global learned.

Editors: Xu Wei, Emmi Laine

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Keywords:   Ford China,FMet,NEVs