(Yicai) Aug. 1 -- Ford Mustang Mach-E, the electric vehicle unit of Ford Motor in China, was officially taken over by one of the US auto giant's two joint ventures in the country as part of its strategic transformation and business adjustment in the world’s biggest auto market.
Changan Ford, a JV with Changan Automobile, has allowed nearly 300 dealers to sell the Mustang Mach-E in a first batch, it announced today with Ford Electric Mach Technologies Nanjing, Ford's other EV unit in China. Some 70 core new energy vehicle cities across the country will be covered, with the number of service outlets nearly tripling, it noted.
Ford Electric Mustang, which was part of Ford Electric Mach, has also merged with Changan Ford to integrate the production, supply, and marketing of its business in China, it pointed out.
Due to long-term sluggish sales early last month, Mustang Mach-E had planned to integrate its sales channels. Some sales staff at Ford Electric Mach would be moved to Changan Ford, a company insider told Yicai at the time, adding that others may be pushed to leave voluntarily, or their contracts would not be renewed.
Michigan-based Ford used to dream big about the Chinese NEV market. Chen Anning, Ford China's former chief executive, was said to be working to float Ford Electric Mach on the Hong Kong stock market. With a registered capital of USD665 million, it was formed in 2020 from Ford Mustang’s marketing department and a part of Ford's research and development center in Nanjing.
Ford’s latest move concerns the poor sales of Mustang Mach-E sport-utility vehicles. Ford China negotiated with Changan Ford and Changan Auto about integrating the iconic marque’s recently shrunk sales channels, but the JV refused to take on its workers, the insider noted.
Another measure the US carmaker is taking to save Ford Mustang is the development of products featuring Changan Auto’s NEV technologies, Yicai learned.
Sales of Mustang-branded cars have hovered around just a few hundred per month since the Mustang Mach-E model began selling in China in April 2021. Only three Mustang cars were made in April, and 33 were sold, according to data from the China Passenger Car Association. Just 60 sold in January to April.
Editor: Martin Kadiev