It is considering a major manufacturing presence in the southwestern Chinese city, where it would serve the domestic market and be an Asian export base. While no agreement been reached on key points such as profit sharing, a spokesperson has commented that output could begin as soon as 2018 if Lincoln continues its strong growth in China. However, it may still be until 2020 or later for the first Lincolns to roll off the line as discussions are still in the preliminary stages.
“There’s no detailed plan at the moment,” said Zhu Huarong, president of Chongqing Changan Automobile, on the producing of the Lincoln brand in China.
Ford CEO Mark Fields has said China could replace the US as Lincoln’s largest market by the end of this decade. The company is investing US$2.5 billion to overhaul the waning luxury line. Ford stopped making the Town Car, the long-lived business-travel stalwart that had become the symbol of Lincoln.
In its first year in China, Lincoln sold more than 11,000 vehicles, which Fields has called the fastest start for a luxury-auto brand there “in recent history.”
Manufacturing in China would allow the automaker to save on a 25 percent import tax, making its offerings more competitive in a premium market dominated by Germany’s Audi, BMW and Mercedes-Benz. Lincoln would join General Motors’ Cadillac and Nissan Motor’s Infiniti among luxury nameplates that are made in China.
The possibility of building Lincolns in China is made easier by the fact that the luxury cars are built on the same mechanical underpinnings as Ford models already produced there.
It is not confirmed which Lincoln models Ford is considering building in China. The brand now sells four import models in China, according to its website. The MKZ sedan starts from the recommended price of 315,800 yuan (US$48,000).
Ford wants to boost the number of Lincoln stores in China to 60 by the end of this year, from 40 in March. Ford also recently announced changes in its executive leadership in China that elevated the unit’s corporate-reporting structure. Dave Schoch, Ford Asia-Pacific chief, is taking over direct supervision of the automaker’s Chinese operations, adding the title of chairman and CEO of Ford China.
Last year, Ford’s pre-tax profit in its Asia Pacific region, where China is its largest market, rose 29 percent to US$765 million. In this year’s first quarter, the company’s earnings in the region more than doubled to US$220 million and its Chinese market share rose to 4.5 percent from 4.3 percent.
