Ford targets 40,000 annual exports to China as Lincoln launch nears
Ford plans to boost exports of North American vehicles to China, including the Lincoln range, aiming for 40,000 units a year as Chinese demand for performance and SUV models rises.
Ford is preparing to ramp up exports of North American-built vehicles to China, targeting annual shipments of up to 40,000 units as it readies the Lincoln brand for its Chinese dealership launch in 2014. The company will supply Chinese Lincoln showrooms directly from the US, rather than investing in local production, a move that avoids immediate capital outlay but exposes buyers to higher import duties.
The decision to import Lincolns reflects Ford’s broader export strategy for China, where the company is increasing shipments of US and Canadian models even as rivals such as General Motors pivot to local manufacturing. Ford exported 16,405 vehicles to China between January and September 2013, with plans to more than double that figure as demand strengthens for both SUVs and niche performance cars.
Performance and SUV models drive export growth
Chinese buyers have shown particular interest in Ford’s performance hatchbacks. Demand for the Focus ST and Fiesta ST rose by 200% in the first nine months of 2013, according to company figures. These models are imported from overseas, as their relatively low volumes do not justify local assembly. Ford’s strategy contrasts with some competitors, who have scaled back exports in favour of building high-volume models in China.
SUVs are another focus. In 2013, Ford began shipping the Explorer from the US to China, expanding its Chinese SUV line-up beyond the locally built EcoSport and Kuga. The Edge is also exported from Canada. This approach allows Ford to offer a wider range of SUVs without the immediate need for new Chinese production lines.
Capacity and local production plans
While Ford is adding two new assembly plants and three powertrain factories in China to support future growth, the company does not plan to localise all models. For lower-volume vehicles, importing remains more cost-effective than establishing Chinese production. This mirrors Ford’s global practice of sourcing limited-run models from overseas plants for various markets.
Implications for buyers and dealers
For Chinese buyers, importing US-built Lincolns and performance Fords means higher prices due to tariffs, but also access to models not yet produced locally. Dealers will stock a broader range, but will need to manage costs and supply as Ford balances local assembly with imports. The company’s ongoing investment in Chinese manufacturing suggests that over time, more mainstream models will be built locally, with imports reserved for specialist and lower-volume vehicles.
Ford’s export ambitions underline the growing appetite for diverse vehicle types in China and the importance of flexibility as the market evolves. The company’s approach allows it to meet demand for both mass-market and specialist models without overcommitting to local production before volumes are proven.
