Ford plans China-only crossover as sales, profits slide

August 08, 2018 01:00 AM

The Territory comes with either a gasoline engine, a 48-volt mild hybrid system or a plug-in hybrid powertrain.

Ford Motor Co. hopes a new midsize crossover in China will help it stem mounting losses in the world's largest vehicle market.

The automaker early next year will introduce the Territory, which it bills as an affordable utility that slots between the EcoSport and Kuga. It was developed with its joint-venture partner, Jiangling Motors Corp.

The vehicle comes with either a gasoline engine, a 48-volt mild hybrid system or a plug-in hybrid powertrain. Available technology includes an infotainment system with Mandarin voice-command and the automaker's Co-Pilot360 suite of standard driver-assist features.

"It's a very unique product for China," Jim Farley, Ford's president of global markets, told Automotive News.

Ford is targeting entry-level customers outside of China's biggest cities. It says midsize utility sales in that country grew 38 percent from 2012 to 2016.

"Territory is a key proof point for how we will grow in China," Ford China CEO Peter Fleet said in a statement. "We brought Territory to market with speed, high quality and cost efficiency. It will be affordable for young families and new buyers across China, not just the coastal mega-cities. And the technology will delight customers."

Ford is preparing a product blitz for China as sales and profits continue to fall there. It plans to launch more than 50 new vehicles there by 2025.

Available technology on the Territory includes an infotainment system with Mandarin voice-command and the automaker's Co-Pilot360 suite of standard driver-assist features.

The automaker said its sales in China fell 25 percent in the first half of 2018. Its China operations lost $483 million in the second quarter before taxes, versus a $23 million profit there a year earlier.

"It's going to take us a while to get out of that issue," CFO Bob Shanks said last month.

Farley last month said Ford had "serious shortfalls" in its go-to-market strategy in China and that dealer profitability had been hurt by improper maintenance of the product portfolio.

He said Ford has begun to address dealer profitability in the region and that, by the end of next year, 60 percent of its products there will be new or updated.