Ford (F) to Launch SUV Territory in China to Boost Sales

Ford Motor Company F has unveiled a sport utility vehicle (SUV) for the China market in order to boost its declining sales in China, per Reuters. This auto giant will begin selling the entry-level SUV, Territory, from early 2019. This SUV is being developed by Ford and its local partner, Jiangling Motors Corp Ltd (“JMC”).

Ford intends to launch several new or redesigned vehicles in China, starting from 2019 and through 2025. In fact, vehicles — including Ford Territory, Ford Focus and Ford Escort — will begin their volume retail contributions in first-quarter 2019. Ford Territory, based on a no-frills model, will target smaller and lower-tier cities in China, which were major demand driver in the auto market in the mainland.

Importantly, Ford witnessed 43% decline in vehicle sales in September 2018, on a year-over-year basis. In the first nine months of 2018, sales plunged 30% in comparison with the first nine months of 2017. Waning sales in China and old model lineup can be attributed to declining sales. The recent move is a decent effort by the auto giant to recover its fortune in China.

Currently, Ford has a long-term growth rate of 5.3%

Some stocks in the auto space are Allison Transmission Holdings, Inc. ALSN, AB Volvo VLVLY and Navistar International Corporation NAV.

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