Ford to manufacture its luxury SUV brand Lincoln in China

14 Mar 2017

US auto major Ford is making a big push into China, Asia's largest economy, with plans to produce an all-new SUV in China for Chinese customers by the end of 2019, according to company sources.

Ford Motor is hoping to become a full-fledged rival foreign luxury brand in a key world market. Lincoln will "produce an all-new SUV in China" by the end of 2019, said spokesman Said Deep.

The new model will be in addition to the Lincoln vehicles currently being exported from the US, like the Lincoln Continental sedan that went on sale there late last year. Lincoln officials, however, gave no details about the new model.

The new vehicle, to be built in Chongqing, will pit Ford against other foreign luxury car brands such Tata Motors' Jaguar and Land Rover and Mercedes-Benz, owned by German carmaker Daimler.

In fact, Ford's luxury brand Lincoln has been quite popular in China and, last year, the company posted a stunning 180 per cent growth in sales, selling 32,558 vehicles. Lincoln also doubled its presence in China with seven branches and 65 Lincoln stores in 2016.

"The Lincoln product and ownership in China is resonating with Chinese customers even beyond our expectations," Kumar Galhotra, president of Lincoln, said in a statement. "We are now taking Lincoln to the next level by building a new SUV in China to join a dynamic lineup of imported cars and SUVs."

The Michigan-based company will still continue exporting Lincoln vehicles from North America, including its flagship luxury sedan, the Lincoln Continental, which launched last year.

Since the new Lincoln model will be sold exclusively in China, one of the world's largest auto markets, it is in line with President Trumps policy of American goods in America, which could also give rise to a Chinese goods for China policy.

It would also save Ford from Trump's criticism of investing in foreign lands to export products to the US.

China is a hot market for foreign auto makers as upscale consumers have a distinct fondness for foreign cars.

While Lincoln reported 10 per cent growth in the US last year its sales soared by 180 per cent in China - the brand's best showing in nine years. Lincoln sold 32,559 vehicles in China last year, about triple the number of sales in 2015, the brand reported in January.

Ford Motor reported selling 1.27 million vehicles in China last year along with its Chinese affiliates, Changan Ford Automobile and Jiangling Motors, a 14 per cent increase over the previous year.