It is no tip that Ford is confronting a teenager predicament in China.
– Jan sales were down 18 percent year-on-year. (Sales during opposition GM were adult 15 percent)
– Ford China CEO Jason Luo – in a position only 5 months – has resigned
– Momentum (outside of Lincoln) has fundamentally stalled, while partner tensions simmer.
All is not lost, however. Ford leaders competence be relieved to learn that the Chinese word for crisis is stoical of two characters, 危 and 机。
The first, wei, means danger. The second, ji, means opportunity. Negatives and positives reside side by side.
Ford’s crisis, indeed, contains elements of both danger and opportunity.
First, a dangers: Ford’s China sales could continue to case for months. Main culprit: Product offerings are removing aged and a new metal will not arrive until a finish of 2018.
Ford’s slump, that started in 2017, also feels heavier since it contrasts with the 5 previous years of record growth.
Between 2012 and 2016, Ford doubled it sales to 1.2 million.
Source: Ford China (includes Lincoln)
What else is causing a feeling of foreboding? Vastly softened Chinese competitors like Geely and Great Wall are gobbling adult uninformed marketplace share. In 2017, Geely even outsold Ford.
A required response would be to reason one’s belligerent and wait for new vehicles. Like an army section underneath encircle calling for backup.
This proceed competence have worked in a past. But times have changed. Chinese competitors poise a genuine danger.