SHANGHAI, April 19: US auto giant Ford Motor Co has begun making Mondeo cars at its plant in southwestern China and aims to sell 4,000 to 5,000 of the luxury sedans this year, the company said on Saturday.
The world’s second-largest automaker also plans to launch a compact sport utility vehicle called the Maverick this year, broadening its product slate in the fast-growing China market after introducing its first model, the Fiesta, in January.
The Mondeo, one of Ford’s European models, will debut in China later this year but its price has not been fixed.
“We are in the process of producing the Mondeo today,” Ron Tyack, president and chief executive of Changan Ford, told reporters at a media event ahead of the Shanghai Auto Show.
“I expect we’ll be selling in excess of 4,000 to 5,000 vehicles this year in the market,” said the head of Changan Ford, a 50-50 venture with Chongqing Changan Automobile Co Ltd.
Ford is considered a latecomer to the Chinese market, where arch-rival General Motors Corp already commands an eight per cent market share.
The Mondeo and Maverick might help flesh out its offerings and allow Ford to go up against Volkswagen AG and GM, who already turn out a wide range of sedans and other vehicles.
Changan Ford will likely manufacture more than 25,000 cars in 2003 — including the Fiesta and Mondeo — at its $98 million plant in the southwestern city of Chongqing, Tyack said.
“Once the vehicle is released officially to the market and has the full cataloguing, we’ll officially announce what the price will be,” Tyack said.
The Maverick is likely to compete head-to-head with the Pajero Sport, launched by Beijing Jeep Corp — a venture between Mitsubishi Motors and Daimler Chrysler AG.
“In the near future, China will become the world’s largest auto market. We’re not only looking at cars, we also anticipate demand for even higher-end vehicles. In 2002, imports of SUVs increased threefold,” Mei Wei Cheng, Ford’s China chief said in a statement.
Analysts say China’s car market — where sales topped one million for the first time last year — is headed for a price war as producers raise capacity and battle for bigger market shares.
Despite concerns that fierce competition and a looming capacity glut might hit margins, GM China chief Philip Murtaugh said market growth might surprise again this year. Analysts predict car demand could grow anywhere between 15 to 30pc.—Reuters
