China has emerged as one of the key EV markets globally, and automakers are scrambling to adjust to the new reality. Ford, which is already present in the Asian country, is adjusted its EV strategy to gain a stronger foothold in the vast market. As Electrive reports, the American company’s Ford Electric Mach Technologies (FMeT) will cease to operate as a separate entity.
Ford set up FMeT as a Chinese subsidiary last year for making new EVs and distributing existing electric models, including the Chinese Ford Mustang Mach-E. However, the subsidiary has now folded into Ford’s joint venture in China, known as Changan Ford, in partnership with Changan Automobile. The changes take effect from August 1st, 2023. (via Electrive)
From now on, Changan Ford will be responsible for selling the electric Mustang, which is unsurprising, as the JV has been building the Chinese Mustang since 2021.
This arrangement covers about 300 dealers scattered across 70 cities in China. It significantly increases the EV’s sales network since Ford has recorded appalling sales of the EV, reportedly selling only 60 units in the first four months of 2023.
Ford is taking this step after discount campaigns failed to boost sales in China. The automaker offered steep during April, which saw prices dropping to 28,600 euros but only sold 33 units.
However, in other parts of the world, Ford has tripled the sales of
As part of the deal, Changan Ford will upgrade for free the chips in the existing Mustang to the Qualcomm Snapdragon 8155 from the older Snapdragon 820A.
Meanwhile, Ford hopes its deal to adopt Tesla’s North American Charging Standard (NACS) will boost demand in North America.