Another Joint Venture "Disappears" from Financial Reports

A January 2025 production and sales report from Changan Automobile revealed that Changan Ford sold 17,512 vehicles that month — a 16.44% year-on-year drop. The downward trend showed no sign of reversing in the months that followed.

Final data from the China Passenger Car Association (CPCA) shows Changan Ford's retail sales in China plunged to just 99,400 units in 2025 — nearly half of the 247,000 sold in 2024. For the first time, the joint venture fell below the industry-recognized 100,000-unit "annual survival threshold."

Changan Ford 2025: When Sales Became "Data Unfit for Public Release"

2025 marked a comprehensive retreat for Changan Ford. From the very start, the joint venture's monthly sales figures continued their slide.

According to production and sales reports from Changan Automobile, Changan Ford suffered year-on-year declines for five consecutive months. January sales hit 17,512 units, down 16.44%. February fell to 11,991, a drop of 8.96%. March slipped to 18,265, down 14.95%. April tumbled to 12,734, a 31.58% plunge. May eased to 16,481, down 7.95%. 

A telling sign emerged in June 2025, when Changan Automobile stopped disclosing Changan Ford's sales figures separately in its monthly reports. The shift in disclosure reflects the joint venture's waning importance within the wider group.

Behind the sales slump lies a dual dilemma: an over-reliance on a narrow product structure and a lagging transition to electrification. In the internal combustion engine sector, Changan Ford's lineup remains thin, with a glaring void in the 100,000 yuan price bracket.

Changan Ford's sales mix in 2025 was visibly imbalanced. Industry analysis indicates the brand relied heavily on the Mondeo, which accounted for nearly half of total sales. Meanwhile, the discontinuation of former volume leaders like the Focus has left the product lineup highly vulnerable to market shifts.

The struggle is even more pronounced in the new energy sector. The all-electric Ford Mustang Mach-E sold a mere 31 units between January and May 2025. Specifically, sales were 11 in January, 13 in February, 4 in March, 2 in April, and just 1 in May. For the full year, sales totaled only 35 units, with zero sales recorded from August onward.

Ford's electric vehicle business is incurring significant losses. In the second quarter of 2025 alone, the unit posted a $1.3 billion loss. That stands in stark contrast to the broader market, where the penetration rate of new energy vehicles in China surpassed 50% in 2025.

To understand Changan Ford's current predicament, it helps to look back at its history. The joint venture was established on April 27, 2001, by Changan Automobile and Ford Motor.

Image Source: Changan Ford

The company developed rapidly in its early years. Following the start of production in 2003, it launched the Fiesta and Mondeo within 24 months. In 2006, the Focus hatchback hit the market to a warm reception.

Changan Ford once enjoyed a peak period. In 2016, annual sales hit a record 957,500 units. Bolstered by models like the Focus and Escort, the joint venture established a firm foothold in the Chinese market.

From the "Million-Unit Club" to "Non-Independent Disclosure": The Typical Decline of a Joint Venture

Over the past five years, Changan Ford's sales trajectory has been distinctly downward. Sales fell below the 200,000 mark in 2019, stood at 247,000 units in 2024, and then collapsed to 99,400 units in 2025.

Facing market pressure, Changan Ford has taken a series of countermeasures in recent years. In May 2024, Ai Xiaoming was appointed president of Changan Ford. The following June, the company launched the Mondeo Sport Hybrid, priced between 209,800 and 229,800 yuan.

In 2025, Changan Ford further adjusted its organizational structure and strategy. In September, Wang Xiaofei replaced Yang Dayong as executive vice president. In November, the company underwent a business registration change: Zhu Huarong stepped down as chairman, succeeded by Zhao Fei. That same month, the Focus was officially discontinued.

Changan Ford also moved to address quality control issues. In late 2025, the company announced a recall of 38,473 Escort vehicles produced between February 27, 2018, and May 9, 2019. The recall was prompted by stress concentration issues with the gasket connecting the fuel filler hose to the fuel tank, which could lead to fuel leakage.

Amid the sustained sales decline, Ford China announced a major adjustment in September 2025. A Ford Sales Service Company was established in Shanghai. This entity merges the sales and service operations of JMC Ford and Changan Ford into a single channel.

This marks Ford's first attempt at channel integration in years. Back in 2018, Ford established the National Dealer Service Development (NDSD) to unify its sales network, but that plan never fully materialized.

The scale and impact of this integration are far more significant. Prior to the merger, JMC Ford had roughly 110 outlets while Changan Ford had about 270. The plan is to reduce the combined total to approximately 300.

The new sales service company will fully manage the marketing, sales, and service of Ford brand passenger vehicles and pickups in China. The move aims to reduce internal friction and improve channel efficiency and dealer profitability.

Analysts view this channel integration as a sign of Ford's strategic retrenchment in China. As early as 2023, Ford CEO Jim Farley signaled that the automaker would adjust its strategy, reduce investment in China, and focus on higher-return businesses.

Changan Ford's transition struggles stem from multiple causes. On product strategy, the company persisted with standard hybrids even as the market shifted toward plug-in hybrids. This niche strategy failed to win market approval.

Image Source: Changan Ford

Changan Ford's layout in electrification is insufficient. Its sole pure electric model, the Mach-E, has seen dismal sales. This stands in sharp contrast to domestic brands and some joint ventures that have made significant headway in China's new energy market.

Financial pressure has also constrained Changan Ford's transformation. Between 2021 and 2024, the joint venture's total assets shrank by more than 12.5 billion yuan, its debt-to-asset ratio hit 94%, and revenue fell 22%. These financial headwinds have severely limited funding for product development and market investment.

Frequent management turnover and a lack of continuity have also plagued the company. Some observers argue that executives lacking automotive industry experience made missteps in product planning and market strategy.

Meanwhile, its traditional internal combustion business faces intense competition from domestic brands. In the mainstream 100,000 to 200,000 yuan price range, domestic automakers have achieved significant advantage in product strength through new energy models, squeezing the market space for joint ventures like Changan Ford.

Conclusion:

Changan Ford's full-year retail sales of 99,400 units represented a near-50% drop from 2024. This also marked the first time it fell below the industry's 100,000-unit survival threshold. Its network of 270 outlets is being integrated with JMC Ford's 110 dealers. The plan is to shrink the total to around 300.

Traditional mainstays are losing momentum, and the Mach-E — once the primary hope for the electric transition — sold just 35 units all year. Changan Ford's plight is a microcosm of the struggles facing joint ventures amid China's automotive industry upheaval; its path forward remains fraught with uncertainty.