Boston, MA 10/10/2014 (wallstreetpr) – Ford Motor Company (NYSE:F) expects to benefit from new models and new plants in China to lift its sales in the coming months. In September, the company’s sales slackened in the region. This is in contrast to its rival General Motors Company (NYSE:GM) delivering an accelerated pace of growth.
Growth Slowed
The American auto company and its joint venture partners in China sold 95,875 vehicles in September in China, Reuters reported. It meant 20 basis points fall from the previous year month. It appeared that the slow down in the growth rate was in the pipeline for the company.
While Ford Motor Company (NYSE:F) was able to achieve double-digit growth in the first seven-month period, the uptick slowed to single digit of 9% in August. In September, it slipped into negative territory. For the year-to-date period, its sales advanced 26% to 813,412 vehicles from the last year period.
This is totally in contrast to what the other leading American automaker achieved in China in the last three-month period. General Motors Company (NYSE:GM) achieved a growth rate of 12.7%, 14.0% and 15.2% in July, August and September respectively.
Ford Motor Company (NYSE:F)’s slowing growth could suggest that the company has dried out its ideas. However, the company hoped to turn it around to post growth in the coming months by launching new models.
New Assembly Facilities
The company has a definite plant for China market. As part of it, the plant in Chongqing would commence assembling or production later this year. It has a capacity of 300,000 vehicles on an annual basis. Another plant in Hangzhou would also assemble or produce 250,000 vehicles from the next year.
Ford is targeting to produce or assemble 1.5 million vehicles in China. The two plants capacity would take its total capacity in China to 1.5 million vehicles by the end of the next year. Though the company indicated that it has not set any sales target for the year 2015, its Spokesperson Claire Li said that the capacity additions were in line with sales expectations.
The Ford Motor Company (NYSE:F) would be launching new models such as Ford Mustang and Ford Escort in the next few months.
