Ford Plans Agressive China New Car Policy

SHANGHAI April 21, 2003; Dow Jones is reporting that Ford Motor Co. , which launched the first Ford branded passenger car in China this year, plans to follow this with the introduction of at least one new model annually, a company executive said.

"We plan to expand the segmentation of our products over the next few years, and we plan to have at least one product every year," said Ron Tyack, president and chief executive officer of Changan Ford Automobile Co., a 50-50 joint- venture between Ford and China's fourth largest auto maker, Changan Automotive ( Group) Co.

He made the comments over the weekend on the sidelines of the Shanghai auto show.

The joint venture has sold 10,000 of its first car, the Fiesta sedan, since its Jan. 18 launch, Mr. Tyack said.

Ford also intends to launch the Mondeo, a car aimed at the premium market segment, as soon as it secures final approval from the Chinese authorities. Mr. Tyack expects 4,000 to 5,000 Mondeos to be sold in China this year, but noted the number would depend on when the joint venture gets the green light to market the car.

Production of the Mondeo has already started, he said.

To help push sales of Ford branded cars, Mr. Tyack said 26 Ford dealerships would be in place by the end of June, an increase from the current 17.

Although Ford Motor owns the Volvo, Mazda, Land Rover, and Jaguar brands, Mr. Tyack said each would be sold through exclusive brand dealerships to "deliver the experience to the customer."

Ford also has a 30% stake in Shenzhen-listed Jiangling Motors Corp., but isn't displaying models from that company at the auto show. Jiangling produces the popular Ford Transit light truck in China.

Mei Wei Cheng, chairman and chief executive officer of Ford Motor (China) Ltd., said Ford has no plans to increase or decrease its holding in Jiangling.

There has been some speculation by stock market traders that Ford is looking to sell its stake