Ford Motor’s operations in China generated approximately $600 million in earnings last year, a notable achievement given the challenging market environment, CEO Jim Farley announced Thursday evening.
“I’m happy to say that Ford makes money in China, and I’m very proud of that, because not many [automakers] can say that,” Farley stated after revealing a new vehicle at the Detroit Auto Show.
Farley noted that these earnings were bolstered by the export of vehicles like the Lincoln Nautilus. This model is manufactured exclusively in China and shipped to other markets, including the United States.
Challenges in the Chinese Market
The Chinese market has become increasingly difficult for automakers to navigate, particularly for established Western companies such as Ford and General Motors. Competition from domestic automakers and evolving consumer preferences have added pressure to foreign manufacturers.
Ford’s Strategy in China
While Ford does not provide region-specific earnings details, Farley has highlighted the company’s shift toward an “asset-light” strategy in China. This approach involves streamlining operations and focusing on exports and partnerships to maintain profitability in a complex and competitive market.
Despite the headwinds faced by the industry, Ford’s performance in China reflects the company’s ability to adapt and find success in one of the world’s most challenging automotive markets.
