After Sagging Sales to China, Ford Taps Industry Executive

After seeing sales to China slump, Ford is turning its struggling operations in the Asian nation into a stand-alone business with its own CEO.
By Adam Smith ,

After seeing sales to China slump, Ford Motor Co. (F) - Get Report is turning its struggling operations in the Asian nation into a stand-alone business with its own CEO, the company said Wednesday, Oct. 24.

Tapping a familiar face in the industry to lead the venture, Ford has hired Anning Chen as CEO of Ford China.

Ford's new plan for Asia comes as sales of its cars and trucks in China have fallen 30% year over year, with year-to date sales totaling around 585,000 vehicles as of September.

Yet, as the world's largest vehicle maker in the world, China is critical to Ford's path to profitability and growth, said Jim Farley, president of global markets at Ford.

The auto market in China is massive, and expected to grow through 2020 when the annual number of vehicles sold there is expected hit 24 million, according to a 2016 report by McKinsey & Co.

Ford hopes that stepping on the gas in China will help bring the company back to profitable growth in the Asian nation.

Chen, who's been in the auto industry for 25 years, is expected to form joint ventures, handle imports, and help develop new products for China. He will start Nov. 1.

He was previously chief executive of Chery Automobile Ltd. and chairman of Chery Jaguar Land Rover, Automotive, China.

"Success in China is critical as we reposition our global business for long-term success," said Ford CEO Jim Hackett. "We are strengthening our commitment to the China market and reorganizing our international markets to strengthen their performance."

Ford, which saw shares down slightly on Wednesday, will release its third-quarter results after the closing bell.

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