Ford China: Sales up 46% in 2013, up 59% in first two months of 2014

Sales boom triggers capacity increase to 1.6 million by 2015

2014/03/19

Summary

                                                                                       Summary
 This report summarizes Ford Motor Company's businesses in China: new vehicle sales, its plans for local production models up to 2015, latest facilities to produce vehicles and engines. It also highlights sales results and plans by each joint venture (JV)  as well as by vehicle model.

Related Reports:
US Big Three 2013 Business Performance Report (Mar. 2014)
China: Vehicle sales forecast to grow over 12% in 2014 (Feb. 2014)
North American International Auto Show 2014: US OEMs (Jan. 2014)



Ford's new vehicle sales exploding in China

Locally built Ford vehicle sales in China Ford's new vehicle sales in 2013, excluding 27,000 units of imports, reached a record high of 913,000 units. The year on year (y/y) growth rate was 45.8%, which largely exceeded 13.9% of the y/y demand growth in China.

 In the sedan/hatchback category, sales of the new and the previous Focus totaled 404,000 units in 2013, leading the market for the second consecutive year followed by the VW Jetta and the GM Lavida.

 Ford's sales in January and February 2014 totaled 168,000 units, up 59% y/y. The OEM announced its new vehicle sales target for 2014 as 1.04 million units. Considering the robust sales growth in January through February, however, even 1.2 to 1.3 million-unit sales seem possible. In 2014, the new models launched in 2013, that is, the Fiesta, Ecosport and Mondeo, should contribute to Ford's favorable sales throughout the year. In addition, the China-exclusive Escort and the global S-MAX MPV will be released. The OEM also announced its plan to start manufacturing more than seven models of new light vehicles from March 2014 through 2015 at its plants in China.

 In order to respond to such a steep rise in sales, Ford is steadily increasing its production capacities. It plans to boost its joint venture(JV)s' capacity from 1 million-unit level as of March 2014 to 1.6 million units at maximum in 2015 by starting operations at the Chongqing plant 3 and the new Hangzhou plant after the second half of 2014. The JV aims to increase its production capacity to 1.9 million units in the near future. As for engine production, the OEM has revealed no medium- to long-term detailed plans. It will, however, increase the capacity to 1.4 million units in 2015 from current 1.38-million level..

Sales volume of Ford in China

(unit)
New vehicle sales
2012 2013 2014
(plan)
YoY
Grand total of Ford in China
(on factory shipment basis, including imports)
634,070 939,548 48.2% Over 1,040,000
▽Total of imports 8,108 26,856 231.2% --
▽Total of locally-built model 625,962 912,692 45.8% 1,040,000
By brand and vehicle type Ford brand, passenger vehicle 475,678 746,736 57.0% --
Volvo brand, passenger vehicle 7,453 3,735 -49.9% 6,000
JMC brand, SUV and
light commercial vehicle
142,831 161,829 13.3% --
Yuanwei brand, heavy-duty truck - 392 -
By OEM and
vehicle type
▽Total of Changan Ford 425,954 682,686 60.3% 790,000
By
vehicle
type
Sedan and hatchback 424,154 525,817 24.0% --
MPV 1,800 1,298 -27.9%
SUV - 155,571 -
▽Total of Jiangling Motors 200,008 230,006 15.0% 250,000
By
vehicle
type
SUV 12,264 15,095 23.1% --
Light-duty bus ("Transit") 57,177 67,785 18.6%
Heavy-duty truck - 392 -
Light-duty truck 68,540 79,936 16.6%
Pickup and others 62,027 66,798 7.7%

*Note: Changan Ford and former Changan Ford-Mazda produces Volvo models at its plant in Chongqing based on the agreement with Volvo. 

 

 



Ford's recent model launches in China (2012-2015)

 In April 2011, Ford announced its "China 1515 strategy" at the Shanghai Automobile Industry Exhibition. Based on this strategy, the company  aims to introduce 15 new models in China in the period from April 2011 through 2015. Ford has entered the following passenger car markets in China: the A/B-segment sedan/hatchback market and the C-segment light-vehicle market that includes sports utility vehicles (SUV) and multi purpose vehicles (MPV).

Ford's new model launches in China based on the 1515 Strategy

▽Changan Ford Automobile Corporation, Ltd.: Changan Ford (Plants at Chongqing and Hangzhou)
Model local production launch schedule (plan) Details
New Focus Apr. 2012  A compact passenger car. The standard sales prices (equivalent of the sticker prices) range between CNY 119,900 and CNY 169,900.
Kuga Jan. 2013  A compact SUV sold as the Escape in the U.S. The standard retail prices range between CNY 193,800 and CNY 275,800.
New Fiesta Mar. 2013  The upgraded B-segment global car. The standard retail prices range between CNY79, 900 and CNY 116,900. Equipped with the PowerShift six-speed dual-clutch transmission (DCT) and a 1.5-liter four-cylinder engine. Since February 2014, the GTDi EcoBoost 1.0-liter turbocharged three-cylinder engine has been added to the five-door hatchback model.
Ecosport Mar. 2013  A compact SUV. Available with the 1.0-liter turbocharged three-cylinder EcoBoost engine and the 1.5-liter four-cylinder engine. The standard retail prices range between CNY94,800 and CNY 127,800.
New Mondeo Aug. 2013  The latest, fully remodeled Mondeo medium-size passenger car. The standard retail prices range between CNY189,900 and CNY 275,900. A new platform is adopted. The 1.5-liter turbocharged/2.0-liter GTDi EcoBoost engines are combined with the six-speed automatic transmissions.
Escort
("FuRuiSi", the tentative model name registered in China)
2014  A compact sedan to replace the Focus Classic Model. The predetermined price starts from CNY 90,000. Major competitors include the VW Lavida/Bora.
 Reportedly, the Changan Ford's own brand car based on the Focus Classic Model is under development.
New S-MAX 2014  A compact MPV manufactured at the JV's plant at Chongqing. The predetermined prices range between CNY 190,000 and CNY 250,000.
New Edge Jan. 2015-  A midsize SUV. Most likely to be manufactured at the Hangzhou Plant. Trial production is scheduled for later 2014 at the earliest. The imports have been sold since March 2013 at standard retail prices between CNY292,800 and CNY 429,800.
KA
(Start concept)
2015  A pint-size hatchback, smaller than the Fiesta, based on the Start concept car for purposes like commuting. The standard retail prices range between CNY50,000 and CNY 70,000.
 The 1.0-liter GTDi three-cylinder EcoBoost gasoline engine, or the 1.0-liter naturally aspirated engine, paired with the five-speed manual transmission (MT) and four-speed automatic transmission (AT) with an MT mode are under consideration.
Taurus
("JinNiuXing"; Product code is "D568")
The second half 2015  Ford's flagship model, classified higher than the new Mondeo. Production is to start at Changan Ford's new Hangzhou Plant from the third quarter of 2015 at the earliest. The planned annual production and sales volume for the first year is 27,000 units, to be expanded to over 100,000 units after 2016.
 Developed using Ford's CD4 platform. Available powertrain systems will be the 2.0-liter turbocharged EcoBoost engine or a 3.5-liter V6 engine, mated with a six-speed AT with an MT mode.
▽Jiangling Motors Co., Ltd. (JMC): Jiangxi Plant
Models local production launch schedule Details
Ford U375
(Product code/Project code"J08")
The first half 2015  A large-size SUV with a body-length of approx. 5,000 mm to compete with the Toyota Prado. It has also been reported, however, to be a midsize SUV based on the Ford Everest for the Thai market. The model will be manufactured on the same production line as the existing Yusheng SUV at the Xiaolan Plant in Jiangxi Province. The predetermined retail prices range between CNY270,000 and CNY 450,000.
 Available with a 3.5-liter, direct-injection gasoline engine, the 2.0-liter turbocharged EcoBoost gasoline engine and the PUMA series diesel engine. Equipped with an air-suspension and the EPS system.
Ford V362
(Product code)
2015  The next-generation Transit. The large-size MPV with 2-2-3 seating configuration. (Some reports say it will be the Tourneo Custom.) To be produced at Jiangling Motors' Xiaolan Plant in Jiangxi Province. Equipped with the EcoBoost engine. The predetermined retail prices starts from CNY180,000.
▽Imports (Local production schedule not revealed.)
Model Timing of starting imports Details
Fiesta ST Mar. 2013  The sporty version of the Fiesta. The standard retail price is CNY185,900.
Focus ST Mar. 2013  The sporty version of the Focus. The standard retail prices range between CNY259,800 and CNY 265,800.
Explorer Mar. 2013  The large-size SUV, renamed as "TanSuoZhe" or "Tanxianzhe" in China. The standard retail prices range between CNY 489,800 and CNY 539,800.

Note: At the new Hangzhou Plant, production of the luxury class passenger cars such as Lincoln brand's MKX and MKZ is scheduled for 2015. It has also been reported that the sixth generation Ford Mustang, released in December 2013, will be imported. Another report says that imports and sales of the Lincoln MKC luxury compact SUV will begin later 2014.

 

 



Ford to expand annual vehicle production capacity in China to 1.6 million in 2015

 Although Ford had manufactured passenger cars at its two Chongqing plants and the Nanjing plant, it has withdrawn from Nanjing as it has dissolved its Chinese JV with Mazda. Ford continues manufacturing passenger cars in China at its four plants: the new Hangzhou plant located in Zhejiang, the same eastern China region and three Chongqing plants including the new third plant. The Hangzhou plant to be operational in January 2015 will start with the annual production capacity of 250,000 units. It can be increased to a maximum of 500,000 units after the second phase construction.

 Ford's production capacity in China as of the end of February 2014 is 1 million units/year (1.04 million units at maximum): mainly passenger cars but inclusive of light- and heavy-duty commercial vehicles. It plans to expand it to 1.6 million units in 2015 and to 1.9 million units in the medium term.

Ford's latest vehicle production operations in China

(1,000 units)
JV production in China
(by vehicle type)
Production result Production
plan
Annual production capacity plan
2012 2013 2014 As of the end
of Feb. 2014
After expansion
(planned year)
Changan Ford Automobile Co., Ltd.:
Changan Ford
(Including Volvo cars produced
on commission)
493.5 684.5 790 570 870-920
(second half of 2014)
→1,120-1,170 (in 2015)
→1,420 (future plan)
→N/A (future plan)
Chongqing
plant
Sedan/hatchback 491.4 525.4 (inclusive)
Kuga 144,
Volvo S80L 6
First plant 270,
Second plant 300,
third plant (under construction)
First plant        270
second plant    300
third plant  300-350
(second half of 2014)
MPV 1.9 1.2
SUV (2WD) 0.3 157.8
Hangzhou
plant
Production of
luxury cars scheduled
(Under construction as of February 2014.
Scheduled for opening in 2015.)
250 (in 2015)→
500 (phase 2 plant in the future)
Jiangling Motors *202.0 *235.9 Over *250 *430
Max. *470
Over *440 (in 2015)→
over *470 (future plan)
Jiangxi
plants
Ford brand, Transit *57.3 *70.7 N/A Nanchang plant:
*120
Xiaolan plant:
*300
N/A
JMC brand,
light-duty truck
*69.7 *80.7
JMC brand, SUV
and Pickup truck
*75.0 *84.3
Taiyuan
plant
Heavy-duty truck
(JMC Heavy
Duty Vehicle)
- "Yuanwei"
brand *0.2
(*178 units)
N/A (15 as
announced
in 2012)
*10
Max. *50
*20 (in 2015)
→*50 (future plan)
Grand total
(the JV plants of Ford in China)
*695.6 *920.4 *Over 1,040 *1,000-*1,040 *1,300-Max.*1,390→
*1,560-*1,610
(in 2015)
→*1,890 (future plan)

▽(Reference) Mazda's latest vehicle production operations in China

(1,000 units)
JV production in China (by vehicle type) Production result Production plan Annual production capacity plan
2012 2013 2014 As of the end
of Feb. 2014
After expansion
(planned year)
Changan Mazda Automobile
(Changan Mazda)
67.1 67.8 100 220 300 (by 2017)
Nanjing plant Sedan/hatchback 67.1 44.4 N/A 220 300 (by 2017)
SUV (2WD) - 23.4
FAW Car Co., Ltd.
(trust plant of Mazda brand cars)
102.4 119.4 130 200  260
Changchun first plant Sedan/hatchback 100.5 113.5 N/A 200  260
MPV 1.9 5.9
Total 169.5 187.3 230 420 Over 660 (by 2017)

Note: *indicates commercial vehicles or inclusive of commercial vehicles.The production license for the Mazda Premacy/Family at HAIMA expired in December 2007.

 

Ford's passenger car JV reorganized into Changan Ford, a 50-50 JV with Changan Automobile Group

 The plan to split Changan Ford Mazda Automobile Co., Ltd., a passenger car manufacturing joint venture between Changan Automobile Group, Ford and Mazda, into two entities was approved by the responsible Chinese government organization in November 2012.
 The two surviving, reorganized local production companies are Changan Ford Automobile Co., Ltd., a 50-50 JV between Ford and Changan and Changan Mazda Automobile Co., Ltd., a 50-50 JV between Mazda and Changan. Changan Ford is based in Chongqing and Changan Mazda is based in Nanjing.
 Changan Ford will assume Ford brand business and Changan Mazda will assume Mazda brand business. The three OEMs will continue their partnership for Changan Ford Mazda Engine Co., Ltd., their engine manufacturing JV in Nanjing.

 

▽Relationships of Changan Automobile Group, Ford and Mazda before and after reorganization:

Relationships of Changan Automobile Group, Ford and Mazda before and after reorganization

 

▽Expansion of Changan Ford's plants in Chongqing: To 920,000 units per year after the third plant construction
 Changan Ford Mazda (currently Changan Ford) started construction of the third Chongqing passenger car plant in August 2012, which is to start production in later 2014.
 The total investment in the construction is USD 600 million. The initial annual production capacity will be 300,000 to 350,000 units. The annual passenger car production capacity in Chongqing is expected to total 920,000 units, together with the existing Chongqing Plant1 and Plant2 whose capacities are 270,000 units and 300,000 units respectively.
Expansion of Changan Ford's R&D center in Chongqing
 In conjunction with Chongqing Plant3 construction, Changan Ford commenced expansion work of the R&D center, previously owned by Changan Ford Mazda JV on the same property. The investment amount and other details have not been revealed.
 Ford announced in March 2014 that it would make an additional investment of USD100 million in Ford Motor Research & Engineering (Nanjing) Co., Ltd., its own research and engineering center in Nanjing, Jiangsu Province. It will increase the employees by more than 50% to 2,000 and build a new proving ground facilities 100km away from this Nanjing center.
Changan Ford to continue Volvo production at Chongqing plant
 Changan Automobile Group and Ford will continue production of the Volvo S40 and S80 at Changan Ford's plant in Chongqing. Volvo Cars once belonged to the Ford Group. Production of the S40 will continue up to 2015 and the S80 production will be kept until 2018. For the Chinese market, the S80L long-wheelbase model is manufactured.
 Changan Ford aims to manufacture and sell 6,000 units of the Volvo S80L in 2014. In 2013, the OEM sold 3,735 units. After it started consigned production of 20,000 units per year in the beginning of 2012, it also planned to manufacture the Volvo S60 at its Chongqing plant, previously owned by Changan Ford Mazda. The S60 uses the same P2 platform as the S80. The planned Volvo production, however, was halted because Zhejiang Geely Group Holding Co. Ltd. acquired Volvo Cars.
(Reference 1) The latest report on Volvo Car's China project under Zhejiang Geely Group Holding Co., Ltd.
 Zhejiang Geely Group Holding, the parent company, revealed on March 1, 2014 that Volvo Cars is smoothly creating development and production business in China and that all the planned projects had been approved by the Chinese government as of January 2014.
 Major projects approved include car-manufacturing plants in Chengdu, Sichuan Province and Daqing, Heilongjiang Province, an engine plant in Zhangjiakou, Hebei Province and Shanghai R&D Center.
(Reference 2) The latest report on Changan Mazda Automobile Co., Ltd.
 Mazda left the JV with Ford at the end of November 2012 and created Changan Mazda Automobile Co., Ltd., a new 50-50 JV with Changan Automobile Group, in Nanjing, Jiangsu Province in January 2013.
 The passenger car production capacity as of February 2014 is 220,000 units. In addition to current production models of Mazda 2, Mazda3 and CX-5, it will start manufacturing and sales of the fully remodeled Mazda3, sold as the Axela in Japan and the"AngKeSaiLa" in China, in mid 2014.

 

▽Changan Ford's Hangzhou plant to open in 2015
 In August 2012, Ford and Changan Automobile Group started building their fourth JV passenger car plant in China, after three plants in Chongqing. This new plant in Hangzhou, Zhejiang Province is scheduled to start operations in the beginning of 2015.
 The total investment is CNY7.5 billion, equivalent of USD1.16 billion, of which CNY4.9 billion/USD760 million are invested in the first phase. The facilities include those for stamping, welding, painting and assembly. The first phase production capacity will be 250,000 units per year, which will be doubled after the second phase.
 At the Hangzhou plant, the OEM will manufacture Ford's middle/luxury class cars on the CD4 platforms, including the Lincoln MKX/MKZ. Luxury cars such as the Mondeo and the Taurus will also be produced. The site covers 1.4 million square meters. Changan Ford has already acquired a 667,000-square-meter site for another plant to manufacture core components such as engines and transmissions.

 

Ford to strengthen light commercial vehicle JV, increasing shares in the JV by 2%

 Ford also plans to strengthen its light vehicle business in China through Jiangling Motors, in which Ford holds 30% of shares. The affiliated OEM manufactures light vehicles including the Ford Transit Minibus, SUV and Pickup. It plans to start producing the next-generation Transit and the large-size SUV at the Xiaolan JV plant in Nanchang, Jiangxi Province as early as 2015.
 Ford increased its shares in Jiangling Motors from 30% to 32% in the period between January and November 2013.

 

Ford launched heavy-duty commercial vehicle business: Building production facilities for heavy-duty trucks at Taiyuan, Shanxi Province

▽Jiangling Motors acquired 100% ownership of a heavy-duty truck manufacturer in Shanxi Province
 In January 2013, Jiangling Motors Co. (JMC), whose 32% of shares owned by Ford, acquired 100% shares of Taiyuan Changan Heavy Duty Truck Co., Ltd. at CNY270 million. Taiyuan Changan Heavy Duty Truck Co. was a heavy-duty truck manufacturer in Taiyuan Economic & Technological Development Zone (Taiyuan ETDZ), Shanxi Province, jointly owned by China South Industries Group Corp. and Changan Automobile Group. Ford has thus expanded into the heavy-duty commercial vehicle business in China.
 After the acquisition, Taiyuan Changan has been officially renamed as JMC Heavy Duty Vehicle Co., Ltd. (JMCH).
 Taiyuan vehicle plant used to be owned by the former Taiyuan Changan has a site area of 500,000 square meters, on which an R&D center of 2,800 square meters, an assembly shop of 16,800 square meters, a stamping shop of 12,000 square meters and a body-frame assembly shop of 14,600 square meters are located. The annual production capacity was 15,000 heavy-duty trucks on one shift and 50,000 heavy-duty trucks at maximum. Its three-year business plans developed in 2012 had aimed to achieve sales of 15,000 trucks and over CNY3 billion, and to be ranked in the top ten heavy-duty truck manufacturers in China in 2012. For 2015, it had also aimed to achieve over CNY15 billion sales and to be ranked in the top five. The actual heavy-duty truck sales in 2013, however, were only 392 units out of the production volume of 178 units.
▽Improving and expanding Taiyuan vehicle plant
 Jiangling Motors invested an approximate total of CNY362 million and started improvement and expansion works on JMCH's Taiyuan vehicle plant located at Taiyuan ETDZ in July 2013. The construction is to complete as early as the first half of 2015. The annual production capacity after completion will be 20,000 units on two-shift operation. The new plant will include shops for stamping, body, paint and assembly as well as supporting facilities as distribution.
 In addition, Jiangling Motors plans to purchase a new site at Taiyuan ETDZ to build an engine plant. It plans to increase JMCH's annual production capacities to 500,000 trucks and 500,000 large-size engines over the next few years,

 

 



Ford's current annual engine production capacity in China for 1.4 million

 Ford plans to introduce a total of 20 new engines and transmissions in the period from April 2011 through 2015 as part of its so-called "China 1515 strategy," which aims to launch 15 new models into the market. It is therefore accelerating its efforts to provide powertrain systems including engines and transmissions.

 The current engine production capacity in China is a little less than 1.4 million units per year and no expansion plan has been revealed yet. The plant site for engines, transmissions and other core components, however, has already been acquired in the adjacent area of the new passenger car plant in Hangzhou.

Ford's engine production in China

(1,000 units)
Engine plant Main engine model Production result Annual production capacity plan Note
2012 2013 As of the end of Feb. 2014 After expansion
(planned year)
Changan Ford Mazda Engine Co., Ltd.
(Local independent corporation)
SKYACTIV-G/BZ/new I4/Sigma series models 289.8 389.7 430 N/A  Supplying engines to both Changan Ford and Changan Mazda
  SKYACTIV-G series included N/A N/A 120 N/A -
First engine plant at Changan Ford Chongqing Plant1 2.0 liter and 2.3 liter displacement models and etc. 195.9 283.0 350 N/A -
Second engine plant at Changan Ford Chongqing Plant in Chongqing Ti-VCT or GTDi type of Sigma with 1.5 liter displacement, Fox GTDi type with 1.0 liter displacement 400 (to be expanded in the future) Officially started in October 2013
Engine plant at the Changan Ford Hangzhou plant N/A (The plant site has already been acquired, but construction schedule has not been decided.)
Engine plant at Jiangling Motors xiaolan plant SUV and other light vehicle engine Including 2.0 liter displacement I4 GTDi type (to add type of J15 from 2015) 205 239 200 N/A  From 2015, 2.0-liter turbocharged EcoBoost engines will be added.
Taiyuan engine plant at JMC Heavy Duty Vehicle Heavy duty vehicle engine, "J17" and etc. it's base of Ford's JV in Turkey. (Construction commenced in July 2013; production to start in 2015)  20 (in 2015) →50(planned)  New engine plant
Total 690.6 912.0 1,380 Over 1,400
(in 2015)
→over 1,450
(planned)

 

Powertrain production strengthened at Changan Ford in Chongqing

▽The new engine plant at the Chongqing Plant2 opened in June 2013
 Changan Ford's new Chongqing engine plant, located in Chongqing New Northern Zone (Lijia), opened in June 2013 and started manufacturing 1.5-liter Twin Independent Variable Camshaft Timing (Ti-VCT) 81kW engines and 1.0-liter turbocharged direct injection 92kW engines. The plant's initial production capacity is 400,000 engines per year, which will be raised to 750,000 units eventually.
 The OEM invested a total of USD500 million in constructing the 165,000-square-meter plant building at the site of more than 400,000 square meters.
▽Chongqing transmission plant to open in 2014
 Ford's first transmission plant in China, which Changan Ford started to build at the new Chongqing Beibei District in September 2011, is scheduled to be finished and commence operations in 2014. It has been slightly delayed from the original schedule for the end of 2013.
 USD350 million will be invested in total. With the initial, maximum production capacity of 400,000 transmissions per year, the new plant will mainly manufacture Ford's fuel efficient, 6-speed automatic transmissions.

Engine manufacturing JV in Nanjing producing Mazda new SKYACTIVE engines

 Changan Ford Mazda Engine Co., Ltd., the three OEMs' engine manufacturing JV at Nanjing, continues the same three-way JV operations, different from their passenger car joint ventures.  Its annual engine output capacity as of February 2014 has been raised from the initial 350,000 units per year to 430,000 units per year, 120,000 units of which are prepared for Mazda's flagship, eco-friendly SKYACTIV engines. BZ/i4 gasoline engines are also manufactured.

Jiangling Motors Co., Ltd.(JMC) to add light-and heavy-duty engines production licensed from Ford

▽Xiaolan engine plant to produce the J15 gasoline engines under license from the 1st half 2015
 Jiangling Motors announced in September 2013 that its Board of Directors approved of the licensed production of the Ford's J15 gasoline engines. Production will start at JMC Engine Plant in Xiaolan, Jiangxi Province, in the first half of 2015. The initial annual production capacity will be 50,000 units per year. The total investment to introduce this engine will be CNY197 million. The license will be valid for six years from 2015.
▽Shanxi engine plant: Upgraded and expanded to introduce new engine licensed by Ford's JV in Turkey
 JMCH, JMC's 100% subsidiary, purchased a new plant site of 119,000 square meters at Taiyuan ETDZ in May 2013 and commenced construction of a plant for heavy-duty commercial vehicle engines. It is scheduled to open in the second half of 2015. The initial production capacity will be 10,000 engines per year.
The total of USD500 million will be invested in the plant, which will have facilities for cylinder blocks and cylinder heads production, machining, and engine assembly.
 On this occasion, JMC has decided to introduce the J17 diesel engine for JMCH's new heavy-duty commercial vehicle and is preparing production operations for this purpose. In April 2013, JMC and Ford's JV in Turkey signed a contract that JMC would be granted a license to manufacture and use the J17 heavy-duty engines in China and to export them to designated areas.
 The initial technology license fee will be EUR 1 million. For each J17 engine installed, additional licensing fee of ER150 to EUR190 will be charged. The duration of the contract is twelve years.

 

 



(Reference)Ford/Mazda vehicle sales in China by model

(units)
New vehicle sales
2012 2013 2014 (plan)
YoY
Ford's total sales in China(factory shipment basis including imports) 634,070 939,548 48.2% Over 1,040,000
◇Total of imports 8,108 26,856 231.2% N/A
◇Local production 625,962 912,692 45.8% 1,040,000
▽Total of Changan Ford 425,954 682,686 60.3% 790,000
By type of
vehicle
Sedan and
Hatchback
Mondeo Zhisheng 2.0L 50,933 18,554 -63.6% N/A
Mondeo Zhisheng 2.3L 17,401 15,058 -13.5%
New Mondeo New Zhisheng 1.5L
Turbo charge
- 8,846 -
New Mondeo New Zhisheng 2.0L
Turbo charge
- 26,901 -
Focus 2box 1.8L 86,741 93,741 8.1%
Focus 2box 2.0L 663 0 -100.0%
Focus 3box 1.8L 66,664 63,084 -5.4%
Focus 3box 2.0L 113 0 -100.0%
New Focus 1.6L 133,482 238,317 78.5%
New Focus 2.0L 8,697 8,498 -2.3%
New Fiesta 2box 1.3L 204 510 150.0%
New Fiesta 2box 1.5L 34,581 32,711 -5.4%
New Fiesta 3box 1.3L 464 0 -100%
New Fiesta 3box 1.5L 16,758 15,862 -5.3%
Volvo S40 1,804 0 -100% 6,000
Volvo S80 2.0L 5,379 3,110 -42.2%
Volvo S80 2.5L 0 8 -
Volvo S80 3.0L 270 617 128.5%
MPV S-MAX 1,800 1,298 -27.9% N/A
SUV Kuga - 95,891 - 144,000
Ecosport - 59,680 - N/A
By brand Ford 418,501 678,951 62.2% N/A
Volvo 7,453 3,735 -49.9% 6,000
▽Total of Jiangling Motors 200,008 230,006 15.0% 250,000
By brand Ford brand (light-duty bus "Transit") 57,177 67,785 18.6% N/A
JMC brand
(light-duty truck, Pickup and SUV)
142,831 161,829 13.3%
"Yuanwei" brand (Heavy-duty truck) - 392 -

Note: Changan Ford Automobile Co., Ltd. produces Volvo models at its plant in Chongqing based on the agreement with Volvo..

(Reference) ▽Mazda passenger car sales in China
(Units)
New vehicle sales volume
2012 2013 2014 (plan)
YoY
◇Total of Mazda 's sales in China
(factory shipment basis, excluding imports)
172,732 184,298 6.7%                                N/A
(238,000 units including
imports)
By JV
sale
company
▽Changan Mazda Sales
(factory shipment basis, imports-free)
67,644 67,239 -0.6% N/A
Made by
Changan Mazda
Nanjing plant
Mazda3 2box 1.6L 14,221 10,297 -27.6% (100,000 units including
imports)
Mazda3 2box 2.0L 2,186 2,324 6.3%
Mazda3 3box 1.6L 46,885 29,603 -36.9%
Mazda3 3box 2.0L 1,303 1,112 -14.7%
Mazda2 2box 1.3L 317 182 -42.6%
Mazda2 2box 1.5L 1,747 770 -55.9%
Mazda2 3box 1.3L 71 83 16.9%
Mazda2 3box 1.5L 914 319 -65.1%
Mazda CX-5 - 22,549 -
▽FAW Mazda Sales
(factory shipment basis, imports-free)
105,088 117,059 11.4% N/A
Made by FAW Car Mazda6 2.0L 85,581 93,393 9.1% (138,000 units including
imports)
New Mazda6 2.0L 15,036 17,181 14.3%
New Mazda6 2.5L 1,612 588 -63.5%
Mazda8 2,859 5,897 106.3%

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