Ford China venture's profit slumps behind sharp sales decline
Ford Motor Co.'s passenger vehicle joint venture with Changan Automobile Co. saw net profit decline 32 percent year on year in the first six months as sales declined sharply.
Net profits at Changan Ford Automobile Co., in which Changan and Ford each holds a 50 percent stake, was 6.2 billion yuan ($939 million) in the period, according to Changan, a state-owned Chinese automaker listed on the Shenzhen stock exchange.
The joint venture’s revenue was 49.4 billion yuan, a drop of 14 percent from a year earlier.
In the first half of the year, Changan Ford’s sales fell 17 percent year on year to 359,749 vehicles, after China hiked the sales tax on small vehicles.
At the start of the year, the sales tax for vehicles with engine displacements of 1.6 liters and smaller was raised to 7.5 percent from 5 percent in 2016.
In contrast to the decline in sales at Changan Ford, deliveries at Ford’s truck joint venture, Jiangling Motors Corp., jumped 18 percent to 143,481 vehicles in the first six months.
Lincoln sales in China soared 97 percent from a year earlier to 24,541 vehicles in the same period.
Net profit figures for Jiangling Motors and Lincoln in China have not been released.
Net profits at Changan Ford Automobile Co., in which Changan and Ford each holds a 50 percent stake, was 6.2 billion yuan ($939 million) in the period, according to Changan, a state-owned Chinese automaker listed on the Shenzhen stock exchange.
The joint venture’s revenue was 49.4 billion yuan, a drop of 14 percent from a year earlier.
In the first half of the year, Changan Ford’s sales fell 17 percent year on year to 359,749 vehicles, after China hiked the sales tax on small vehicles.
At the start of the year, the sales tax for vehicles with engine displacements of 1.6 liters and smaller was raised to 7.5 percent from 5 percent in 2016.
In contrast to the decline in sales at Changan Ford, deliveries at Ford’s truck joint venture, Jiangling Motors Corp., jumped 18 percent to 143,481 vehicles in the first six months.
Lincoln sales in China soared 97 percent from a year earlier to 24,541 vehicles in the same period.
Net profit figures for Jiangling Motors and Lincoln in China have not been released.
