Ford Motor Co. recently decided to reevaluate and change its current strategy in China, the worlds largest car market, in hopes of alleviating the current decline in sales it has experienced. Ford plans to introduce as many as 50 new vehicles in the country by 2025, which includes including internet capabilities in all cars in 2 years time as well as introducing 15 new electric vehicles from the multitude in its plans. Ford believes that "china will lead the way" in the markets for both electric cars and autonomous cars, thus the company needs to focus and redefine its strategy for the vital market. The only problem facing Ford is the fact that while for many years it leaned on the lucrative Chinese market when experiencing declining US sales, now the market is full of competitors so Ford must set itself apart if they hope to increase their falling sales.
By redefining and "rebooting" its strategy in the Chinese auto market, Ford hopes to stay on par with not only competition in the region from both US and domestic auto makers, but also on par with the new environmental regulations and standards which China has choosen to implement. This means that Ford Motor Co. will have to expand into the electric vehicle market to meet not only these regulations but the changing customer values and wants in automobiles. In addition to this, Ford will need to expand its relationships with businesses in China in order to complete its goal of rebooting strategy and boosting falling sales. Ford has also chosen to focus its target market on Chinese consumers instead of the American consumer believing that growth and potential opportunities are abundant in the overseas market.
By:
Aaron Mandell
https://www.wsj.com/articles/ford-attempts-a-u-turn-in-china-1512470161
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