Auto & Transportation

On May 5, the first quarter financial reports and sales-related data of major straddle car companies were announced one after another. Ford China's sales increased by 73% year-on-year. Ford Motor welcomed its best first quarter performance since 2011. Its revenue reached 36.2 billion U.S. dollars and net profit was 3.3 billion U.S. dollars. China's performance achieved interest and tax for four consecutive months. The year-on-year improvement in former profits has become the focus of attention from the outside world.

Car predictors combed Ford China’s performance in the first quarter of China and learned that the reason for the good performance was the comprehensive development of Ford and Lincoln in new models, continuous improvement of product quality, extensive application of smart technology, and comprehensive upgrade of customer experience. This also further promotes the deepening of Ford China 2.0.

It is worth noting that entering the second quarter, Ford Motor Headquarters has increased its business operations in China, including the establishment of Ford China's Ford brand passenger car division. In addition, a series of personnel adjustments have been made. It can be said that this series of measures shows Ford's trust and recognition of Ford and Lincoln's China team. The outside world has reason to believe that Ford China's best state in China is far from coming, and its future performance is even more worth looking forward to.

Sales in the first quarter increased by 73% year-on-year

Earnings before interest and taxes improved for four consecutive quarters

According to the first quarter financial report released by Ford China, the revenue of Ford Motor Company in the first quarter reached 36.2 billion U.S. dollars and net profit was 3.3 billion U.S. dollars, setting the best first-quarter performance since 2011. The adjusted EBIT reached A record 4.8 billion U.S. dollars. This includes $902 million in non-cash investment income from Rivian, an innovative electric vehicle company.

Ford's global automotive business showed strong growth in the first quarter. The total pre-interest and tax profit of the automotive business outside North America reached US$454 million, an increase of US$980 million over the same period last year.

It is worth mentioning that Ford Motor holds more than 31 billion U.S. dollars in cash flow and more than 47 billion U.S. dollars in liquidity, which supports Ford Motor to have healthy assets and liabilities. Thanks to the rapid advancement and implementation of the "Ford China 2.0" plan, Ford Motor's business in China has achieved a strong recovery. Revenue has increased by 39% year-on-year to US$800 million, and its loss has shrunk from US$241 million in the same period last year to US$15 million. Earnings before interest and taxes in the first quarter achieved a year-on-year improvement for the fourth consecutive quarter, close to breakeven.

The so-called pre-interest and tax profit is the profit without deduction of interest and income tax, that is, the profit before the payment of income tax without considering the interest, can also be called the pre-interest and tax profit. This data can more accurately reflect the business situation of the enterprise. The growth of profit before interest and tax is closely related to operating income and costs. Therefore, the relatively stable growth rate of profit before interest and tax indicates that Ford China's financial performance is developing in a healthy phase, which is conducive to increasing investor confidence. The further development of breakeven is that profitability is greater than loss, which also provides healthy financial support for Ford China's future investment in R&D and market layout.

Ford China's financial performance in China has improved, which is closely related to the contribution of the Chinese market. According to data, Ford China sold 153,800 vehicles in China in the first quarter of 2021, a year-on-year increase of over 73%, and achieved sales growth for four consecutive quarters. Among them, the Ford brand sold 76,600 vehicles in the first quarter, achieving year-on-year growth for the third consecutive quarter. Both its passenger and commercial models performed well, achieving year-on-year growth of 41% and 74% respectively. Lincoln brand sales reached 19,300 in the first quarter of 2021, an increase of 217% year-on-year and a record high in the next quarter. In the first month of 2021, the Lincoln brand achieved a performance of over 8,200 vehicles, setting a record for the highest sales since entering China in a single month.

According to data released by the China Automobile Association, my country's automobile sales in the first quarter of 2021 will be 6.484 million vehicles, a year-on-year increase of 75.6%. It is not difficult to see that Ford China's sales trend in China is consistent with the overall trend of the Chinese market.

It is worth noting that General Motors' sales in China in the first quarter, which is also an American brand, increased by 69% year-on-year. German brand Volkswagen China's sales in China in the first quarter increased by 61.4% year-on-year, and Mercedes-Benz's sales in China in the first quarter increased by 60.1% year-on-year. It is not difficult to see that Ford China's sales growth in China leads mainstream joint venture brands. Among them, the Lincoln brand, which is an American luxury brand, is far ahead of the luxury mainstream BBA camp with a 217% increase in sales in the first quarter.

Ford Lincoln dual-brand assistance

"Ford China 2.0" strategy is implemented

Ford China's higher performance is closely related to its own products, marketing services and other systems. And all this began to quietly change as early as October 2018. The time goes back to three years ago, when Ford Motor Company upgraded Ford China into an independent business unit, and at the same time announced that Chen Anning was appointed Vice President of Ford Motor Company Group and President and Chief Executive Officer of Ford Motor Company China. Six months later, in April 2019, Chen Anning and Ford's two major brands, Ford and Lincoln, announced the opening of the "Ford China 2.0 Era" in Shanghai.

Under the guidance of the "Ford China 2.0" strategy, Ford China will launch 10 new models to the Chinese market in 2020. The quarterly sales of the Ford SUV family led by the all-new Ford Explorer and Ford Ruiji have increased by 103% compared with the same period last year. , Reaching 34,000 vehicles. Not long ago, Ford Lingyu, a new member of Ford's SUV family in China, a medium and large 6-seater family-use Shuxiang SUV, was officially listed, adding new strength to the Ford brand.

According to data released by Changan Ford National Sales Service Agency (NDSD), 49,300 vehicles were sold in the first quarter, an increase of 46.3% year-on-year. Among them, mid-to-high-end models represented by the domestic brand-new sixth-generation Explorer, Ruijie PLUS, Ruiji and the new Mondeo have become the main force of NDSD sales, accounting for more than half. The first quarter sales of the medium and large sedan Ford Taurus increased by over 130% year-on-year; the new Ford Ruiji sold nearly 8,400 vehicles in the first quarter, an increase of 211.7% year-on-year; the Ford Transit family continued to lead the light passenger market, with a total of 12,300 sales in the first quarter , A significant year-on-year increase of 73.8%.

During this year's Shanghai Auto Show, Ford's new high-end mid-to-large SUV Ford EVOS officially made its world premiere, opening a new chapter of "Ford China 2.0" as the first strategic model. At the same time, the domestic version of Ford's new pure electric SUV Mustang Mach-E officially opened for pre-sale (price range of 265,000 to 379,900 yuan). The plug-in hybrid SUV Ruiji PHEV was unveiled at the PHEV auto show, which also marked Ford's presence in the electrification and intelligent fields. Began to exert full force.

Looking at the Lincoln brand again, Lincoln's sales soared thanks to the promotion of the localization of the Lincoln brand. The data shows that the sales of Lincoln's domestic models are close to 85% of Lincoln's overall sales in China.

On March 18 this year, the new generation of medium-sized American luxury SUV Lincoln Navigator was officially launched in China, marking the realization of Lincoln’s promise to "launch three domestically-made new cars in three years" ahead of schedule. At the same time, Lincoln Adventurer, Lincoln Navigator and Lincoln Aviator form an unprecedentedly powerful new SUV product matrix, helping Lincoln SUV models to reach 17,300 total sales in the first quarter of 2021, a year-on-year increase of 324%.

Among them, the Lincoln Adventurer sold 11,500 vehicles in the first quarter, once again winning the quarterly sales champion of Lincoln's single model. China has become the world's largest market for adventurer models. China's "smart" large-scale American luxury SUV brand new Lincoln Aviator's sales in the first quarter increased 344% year-on-year, with an average monthly sales of more than 1,500 vehicles since its launch.

Ford is moving in a better direction

It is worth noting that at the end of April, Ford China, in order to better speed up "Ford China 2.0" and better fulfill its promise of "More Ford, More China", Ford China reorganized its business and announced a series of new personnel appointments. .

Regarding business restructuring, Ford China will split and reorganize its business into four major sectors: passenger vehicles, commercial vehicles, Lincoln brand, and electric vehicles. According to Ford China officials, this move will better accelerate the revitalization of the automotive business, improve operational efficiency through the modernization of corporate management, and break through tradition in emerging business areas, forming industry-leading competitiveness and own advantages. In order to cope with the adjustment of organizational business, Ford China also announced follow-up in personnel adjustments at the same time.

Mao Jingbo, President of Lincoln China

Nowadays, when it comes to Ford's performance in China, the dual brands of Ford and Lincoln have become the mainstay of contributions in China. Take the Lincoln brand as an example. In the first quarter results, Lincoln China was far ahead of the luxury car market with a sales growth of 217% year-on-year. Lincoln's dazzling performance is indispensable to the efforts of Lincoln China President Mao Jingbo and the team behind him. In her view, the customer experience of the Lincoln brand is the core factor for the sustainable development of a luxury brand. Therefore, she proposed that the "Lincoln Way" should maintain a leading position in customer experience, thus becoming the difference between Lincoln and other brands. A weapon. In order to solve the problems faced by localization, Mao Jingbo formulated three insistences for Lincoln domestic production: the first is to adhere to the American luxury brand positioning; the second is to adhere to the "Lincoln Way" customer experience; the third is to adhere to the sales management of value marketing . In 2020, the Lincoln brand will fully embark on its digital transformation, and the "Lincoln Way" has officially entered the 2.0 era, with deep cultivation and expansion in the "five battlefields" of brands, exhibition halls, products, digitalization, and ecosystem experience. In addition, Mao Jingbo also asked Lincoln to do a good job in localized quality and implement the differentiated product strategy of "holding high and grabbing low".

Mao Jingbo and her team have been highly recognized by Ford China headquarters and global headquarters. Chen Anning, President of Ford China, commented on Mao Jingbo as "captain of firefighting": "The Lincoln China team always surprises me." Lincoln Global President Fan Zhaoyi even told the car prophet: "Lincoln's strategic plan in China is not just to bring and sell several products from the United States to the Chinese market, but to learn more knowledge, skills and experience from the Chinese market. Create high-quality Chinese "smart" manufacturing and apply them to the U.S. and even the global market."

In this regard, Chen Anning mentioned more than once that the Lincoln brand was an "unexpected surprise" for Ford. This is also closely related to the trust and support of Ford Motor Headquarters for Chen Anning and his team. At the same time, Lincoln Headquarters' support for Lincoln China Mao Jingbo has also greatly improved the efficiency of Lincoln's strategy execution in China, which has achieved the set goals for a company. Very important.

It is believed that Ford China is developing in a better direction in the world's largest auto market, and its future performance is worth looking forward to.