Ford accelerates growth of dealer market in China

Dow Jones Newswires - Ford Motor Co. (F) expects to increase its total number of dealers in China to about 490 nationwide by year's end, after adding as many as 115 in 2012.

"We are accelerating the growth of our dealer market this year," said Marin Burela, president and chief executive of Changan Ford Mazda Automobile Co. Ltd., in an interview on the sidelines of the Guangzhou auto show.

Previously, the company announced plans to increase the total number of dealers to 680 by 2015, from 340 in 2010.

To accelerate its growth in China, which will be a key engine driving Ford's growth globally, Ford has said it planned to introduce 15 new vehicles and 20 advanced powertrains in the country by 2015. To support this growth, Ford and its partners including Chongqing Changan Automobile Co. (000625.SZ) and Changan Ford Mazda Automobile Co., are building five new plants in China, including a new $300 million manufacturing facility in Nanchang, where Jiangling Motors Corp. (000550.SZ) is based, with an annual capacity of 300,000 units. Jianling Motors is a commercial-vehicle maker in which Ford owns a 30% stake.

Ford has invested a total of $4.9 billion in China since it entered the market in 1995.

Mr. Burela said Ford was "extremely happy" with its progress in building its dealer network, and it was "focusing very critically" on the growth and development of its dealer network in western China.

"Western China is growing at a much faster rate than Eastern China," he said. Growth rates for the China market overall are about 7%, he said.

"As the west [of China] becomes more affluent people are coming into the market for the first time for them and the history of their families," he said.

Ensuring Ford has a network in place to provide after-sales and market support will be critical for its long-term success, he said.

Meanwhile, Ford is planning to introduce its luxury Lincoln model to China, and is currently recruiting dealers that it will announce in 2014. The company expects to introduce the first model in the second half of 2014, though no product plan has been decided yet, a spokeswoman for Ford Motor (China) Ltd. said. The Lincoln operation will have a separate dealer network.

"Success of Lincoln globally, depends on success in China," she said.