DETROIT – Ford Motor Co. is promising to roll out more than 50 new vehicles in China over the next eight years including 15 powered by electricity as it restructures its business and responds to a government push for cleaner air by making all new vehicles electric.
The automaker, currently a small player in the world's largest auto market, announced the ambitious plan Tuesday in Shanghai.
In addition to the Ford- and Lincoln-brand electric vehicles, the company said a new Zotye-Ford joint venture will sell a new line of affordable vehicles that run on batteries.
The move comes as Ford tries to become more competitive globally under new CEO Jim Hackett. In October, the company announced plans to cut $14 billion in costs, drop some car models and focus resources on trucks, SUVs and electric vehicles.
It's also a sign that unlike rival General Motors, Ford has missed out on the past opportunities to grow substantially in China, said Jeff Schuster, senior vice president of forecasting for the LMC Automotive consulting firm.
“China is extremely important and I think this is an acknowledgment of maybe some previous missteps of investment in China for Ford,” he said.
Here's what you need to know about Ford's plan:
• Foreign and domestic automakers in China sold 24.4 million cars, minivans and sport-utility vehicles in China last year. LMC forecasts only 1-2 percent growth this year because part of a tax incentive expired at the end of last year, forcing buyers to act in 2017. Schuster says annual growth should settle in in the 3 percent to 4 percent range in future years.
• General Motors Co. and Volkswagen AG vie for the title of largest automaker in China. GM sold 383,000 vehicles in October compared with Ford's 150,000.
• In September, China joined France and Britain in announcing plans to end sales of gasoline and diesel cars. It's developing a timetable to end production of traditional fuel cars and no date has been set for the change to electrics.