Ford is making a $1.8 billion investment in research and development in China, according to the Associated Press.
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Ford is hoping the R&D spending push in China will help it develop smartcar features specifically tailored to Chinese drivers. Currently, the U.S. auto maker is planning to install smart vehicle system in China, which has been developed and used in various markets. China’s new-car sales fell 3.4% to 1.42 million vehicles in August from a year earlier. Recently, the company has also cut its prices and reduced its production to half. However, the company’s profits in China have cooled down this year, with sales up only 0.1 per cent for the year, due to a slowdown in the Chinese economy. The Dearborn, Michigan-based automaker is now ranked No. 5 among global automakers in China, behind GM, Volkswagen, Hyundai and Nissan.
Mr. Fields, who took the top job in July, is pushing the company to find new ways globally to attract a younger generation who aren’t necessarily in a position to own vehicles.
Speaking at a corporate event in Shanghai, CEO Mark Fields also said the company will introduce the C-Max Energi, a plug-in hybrid, and the Mondeo hybrid to the China market next year.
“By 2020 we will offer customers in China a range of hybrid, plug-in hybrid and full electric vehicles”, he said, quoted by Reuters. Progress so far has been very slow, with consumers mainly citing the lack of a proper infrastructure to ease the use of such unconventional models.
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Ford has been the major player in Chinese auto market for the past six years.
