[YesAuto News] A few days ago, Ford Motor Company announced its third-quarter financial report. Although the company's revenue in the third quarter of 2018 increased by 3.33% to 37.666 billion U.S. dollars, its net profit fell 36.64% from the same period last year to 991 million U.S. dollars, down 37% year-on-year. Among them, the Asia-Pacific region lost US$208 million in the third quarter.
Ford Motor said in its financial report that the decline in net profit was due to poor performance in China and other overseas markets. As a result, Ford has abandoned its goal of increasing its global profit margin to 8% by 2020.
In the third quarter, Ford's revenue, market share and sales in China, the world's largest auto market, declined. In the Chinese market, Ford lost $278 million in the third quarter. Except for China, the company's profit in other parts of Asia was 170 million U.S. dollars, with a profit margin of 9%.
The key factor is that Ford's lack of new products in China has led to a sharp decline in sales. Data show that in September, Ford's sales in the Chinese market were 64,383 vehicles, a year-on-year decrease of 43%. In the first nine months of this year, Ford's sales in China fell by 30% compared with the same period last year, with cumulative sales of 585,000 vehicles.
Jim Farley, President of Ford Global Marketing, said that Ford will speed up the localization process in the Chinese market to increase profits in the region. But Ford also pointed out that Ford's sales in China will only improve when new SUV models are launched in 2019 and 2020.
Bob Shanks, chief financial officer of Ford, said in an interview that China's new car sales may fall by more than 10% in the fourth quarter, and sales in 2019 will also fall from this year.
In fact, Ford has already carried out a series of rescue measures. On October 24, Ford announced that Ford China will be an independently operated business unit at the provincial level, and appointed Chen Anning as Group Vice President of Ford Motor Company and President and Chief Executive Officer of Ford Motor China, responsible for leading the revitalization and development of China's business.
According to the plan, starting in 2019, Ford will transfer five models to China for production, including a luxury SUV model under the Lincoln brand and Ford's first pure electric small SUV. In the “China 2025 Plan”, by the end of 2025, Ford will launch more than 50 new models in the Chinese market, including 8 new SUV models, including at least 15 Ford and Lincoln brand electric models.