Ford Motor Hires New Head for Martial Arts China Division
Shanghai-
Ford Motor
F 2.14%
Hired car industry veteran Chen Anning to lead his Chinese business as part of an attempt to trigger an attracted turn in the world's largest auto market.
Ford also makes China, former part of the Asia-Pacific division, a stand-alone business unit, said the company in a statement Wednesday. Together, the moves will "accelerate Ford's return to profitable growth in China," said the company.
"Success in China is crucial as we reposition our global business for long-term success," says CEO Jim Hackett. "With today's measures, we strengthen our commitment to the China market and reorganize our international markets to strengthen their performance."
Herr. Chen replaces Jason Luo, who finished in January after less than six months at work, citing personal reasons.
Ford has fought in China, where customers have turned away from their aging product range. Ford's sales in the country fell 6% last year compared with 201[ads1]6 and dropped 30% in the first nine months of 2018 from the previous year.
And the worst thing may be that sales declined 43% in September of the year before, part of a wider decline in China's car market. Chinese passenger car sales dropped 8% in Q3, according to the Chinese car association for car companies.
Ford launched an ambitious turnaround plan in China in December, promising to launch 50 new models by 2025. But that project almost immediately hits complications after Mr. Luo's departure.
Mr. Chen worked for Ford for 17 years before joining eight years ago to become Chairman of Jaguar Land Rover Automotive in China. He was subsequently CEO of Chery Automobile Ltd. He left Chery last month and cited personal reasons, Chery said in a statement. Like Ford, state-run Chery has worn out as the Chinese car market becomes more competitive. Sales fell about a fifth between 2012 and 2017.
Mr. Chen's main task is to implement Ford's local reboot, an effort as executives have said should begin to produce results in 2019, as new products tailored to the China market come into showrooms. His immediate challenge is to arrest a decline that has seen Ford fall from sixth place four years ago to 18 in the first quarter of 2018 when it comes to passenger car sales, according to research firm LMC Automotive.
Ford launched one of New Models designed to win Chinese buyers earlier this month. The territorial medium sports gear is aimed at buyers in smaller Chinese cities where Ford has a limited presence until now.
Ford is also in the process of establishing a new local joint venture with local manufacturer Zotye Auto to build electric cars – Other bids to reach untapped corners of the market – and is preparing to start local production of first class Lincoln cars next year.
Write to Trefor Moss at Trefor.Moss@wsj.com
