Ford Successfully Transforms in China's Auto Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy F?
Source: Yahoo Finance
- Price War Impact: According to the China Automobile Dealers Association, over 56% of car dealerships in China reported losses in 2025, a significant increase from 42% in 2024, highlighting the severe impact of the brutal price war on profits, with 82% of dealers forced to sell new vehicles below wholesale prices, creating an unsustainable business model.
- Export Transformation: In response to intensified domestic competition, Ford has shifted to turn China into a low-cost vehicle export hub, with exports from China surging 60% to approximately 170,000 vehicles in 2024, demonstrating the success of its strategic adjustment.
- Return to Profitability: After six consecutive years of losses, Ford's operations in China turned profitable in 2024, indicating the effectiveness of its transformation strategy, particularly through partnerships with local producers that enhanced its competitiveness in the Chinese market.
- Long-term Outlook: While it is unlikely that China will become a second pillar of global profitability, Ford's export strategy buys time for the company to become more competitive in EV development and costs, with the potential for a rebound in domestic sales in the future.
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Analyst Views on F
Wall Street analysts forecast F stock price to rise
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 12.710
Low
11.00
Averages
13.65
High
16.00
Current: 12.710
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Focus of Talks: The talks centered around collaboration and potential partnerships in the aerospace and defense sectors.
See More
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- Leadership Transition: Doug Field, Ford's Chief EV, Digital, and Design Officer, will leave next month after nearly five years, while Kieran Cahill, Vice President of Manufacturing for Europe and IMG, will retire after 37 years, marking a significant leadership transition for the company.
- Future Development: Ford will continue to leverage its California-based Advanced Electric Vehicle Development team for future programs, including work led by newly appointed Vice President Alan Clarke, ensuring a source of future vehicle and technology breakthroughs.
See More
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- Product Refresh Plans: Ford plans to refresh 80% of its North American portfolio and 70% of its global portfolio by 2029, including a new midsize pickup based on the 'Universal Electric Vehicle' platform, indicating a proactive approach in the electric vehicle market.
- Software and Electrical Architecture: By 2030, Ford aims for 90% of its global nameplates to offer electrified powertrains, with plans to introduce updated electrical architectures and user experiences, enhancing digital services and product quality to drive the company's transformation.
See More
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- New Organizational Structure: Ford has established a 'Product Creation and Industrialization' unit led by COO Kumar Galhotra, aimed at integrating Field's responsibilities to achieve an 8% adjusted EBIT margin by 2029, highlighting the company's commitment to the EV market.
- Product Refresh Plans: The automaker plans to refresh 80% of its North American portfolio and 70% of its global portfolio by 2029, including a new midsize pickup based on the 'Universal Electric Vehicle' platform, indicating ongoing investment and diversification in the EV sector.
- Financial Challenges: Ford reported significant shortfalls in software revenue generation, announcing a $19.5 billion write-down last December, reflecting the substantial financial pressures faced during its EV transition, contrasting sharply with General Motors' $7.6 billion in similar charges.
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