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Why can't Tesla's Ford cars, which are tough in North America, sell a fraction of their rivals in China?
Faced with the rapid progress of Tesla and the goal of producing more than 2 million electric vehicles annually in four years, Ford chose to increase its bet on the Chinese market.
Recently, Ford Motor announced that Ford Electric Mach Technology Co., Ltd. (hereinafter referred to as "Electric Mach") has started operations in China. A person from Ford Motor told the Times Weekly reporter: "The company is the first independent entity established by a foreign auto brand in the Chinese market to focus on the R&D and operation of smart electric vehicles, and it is also the strategic extension and key layout of the Ford Model e business unit in China. ."
Whether it is an official statement or an actual action, it all points to one point: Ford is imminent in advancing electrification.
Ford's transformation, accelerating "electric shock"
According to the data, in the first half of this year, a total of 419,000 new energy vehicles were sold in the United States, with a market penetration rate of 6.59%, including 324,000 pure electric vehicles and 95,000 plug-in hybrid vehicles. In this blue ocean, Tesla Model Y and Model 3 sales are far ahead. Tesla's success is the envy of many car companies, including Ford.
In order to accelerate the electrification transformation, Ford released the Ford+ program in 2021, including two electric vehicle-specific platforms for mid-size, large pickups and SUVs. For small EVs, Ford has launched its first compact crossover based on the Volkswagen Group's MEB platform, which is expected to go on sale in Europe in 2023.
In March of this year, Ford officially announced the spin-off of the automotive business unit, and established the "Ford Model e" of electric vehicles and the "Ford Blue" of gasoline vehicles, and the "Ford Pro" responsible for the commercial vehicle business to form three new business units.
As an important part of the three major units, Ford Model e is responsible for launching more electric vehicle products and providing software, intelligent networking technology and service development for Ford's various business units. Ford CEO Jim Farley personally serves as the president of this department. The move is a testament to how seriously Ford takes the strategy.
According to Ford's plan, from 2022 to the end of 2026, Ford will invest more than 50 billion US dollars in the global electrification business and innovative technologies. It is estimated that by 2026, Ford's global electric vehicle production capacity will exceed 2 million, and electric vehicle sales will account for 50% by 2030.
In North America, Ford is chasing Tesla
Under the vision of electrification, Ford has now launched three pure electric models in the United States, the Mustang Mach-E, F-150 Lightning, and a pure electric van launched in May this year. In terms of HEV, there are also two pickups and two SUVs. There are not many models, but considering the development stage of the new energy vehicle market in the United States, Ford's actions can be called rapid.
In order to support electric vehicles, Ford is working hard to increase battery production capacity. In July this year, the battery company BlueOval SK, a joint venture between Ford and South Korea's SK, was officially established. The two parties have jointly invested in three battery factories, which are expected to be put into operation between 2025 and 2026. The total annual battery capacity of the three factories will reach 129GWh. Among them, the Kentucky plant is expected to have an annual production capacity of 86GWh, which will be the largest battery plant in the history of the United States.
Under the guidance of the electrification strategy, Ford's electric vehicle sales have gradually increased. In August of this year, Ford won the second place in the sales of electric vehicles in the United States, with 2,373 pure electric trucks sold, an increase of 200 units from July; Mustang Mach-E sales reached 3,120 units, an increase of 115% year-on-year, and the new Mach-E Orders reached a record high of more than 7,800 vehicles.
It is worth mentioning that Ford's pure electric pickup F-150 Lightning has 200,000 orders in the pre-sale stage. Due to the excessive order volume, Ford had to suspend new car reservations.
In September, CleanTechnica released the TOP21 sales of pure electric vehicles (excluding plug-in hybrid) in the second quarter of the United States. Compared to the first quarter, Ford's catch-up pace was particularly pronounced. The Model X rose to third place, with the Ford Mustang Mach-E surpassing 10,000 sales, coming in fourth, while the Model S, which had been third, dropped to seventh.
At the same time, Ford began to deliver its pure electric pickup F-150 Lightning in the second quarter, with sales reaching 2,295 units, ranking 13th, becoming the largest dark horse in the US electric vehicle market. The Tesla electric pickup truck, which has been repeatedly delayed in delivery, has not yet met with customers. In this segment, Ford has seized the opportunity.
Overweight China, bet on electric
As the world's largest new energy vehicle market, the Chinese market is another position that Ford cannot give up.
Ford had planned to set up a pure electric vehicle joint venture and a smart travel joint venture with Zotye, but in February 2021, the plan was terminated. At that time, Ford China responded that it would create a more flexible new energy business model.
It is worth noting that in April 2020, before the termination of cooperation with Zotye, Ford established a new energy joint venture - Ford Blue Mach Technology (Nanjing) Co., Ltd., Ford China and Nanjing Jiangning Economic Development Industry Development Co., Ltd. Holds 81.2% and 18.8% of the company respectively.
According to data from Tianyancha, on September 19 this year, "Ford Blue Mach Technology (Nanjing) Co., Ltd." was renamed "Ford Electric Mach Technology (Nanjing) Co., Ltd.", and its business scope added automobile sales, motor manufacturing, and auto parts. and accessories manufacturing. The blue Mach turned into an electric Mach, and the expansion of the business scope will allow Ford to accelerate the implementation of new energy plans in China in the future.
Ford China told reporters that Ford is paying more and more attention to the Chinese electric vehicle market, and its local electrification strategy in China is actively advancing. Electric Mach Technology Co., Ltd. will undertake the important task of Ford's development of electric vehicles in China, and it will also establish close cooperation with Ford's global Ford Model e business unit.
From the perspective of the industry, the reason for creating more targeted products for the Chinese market is that in addition to the importance of the Chinese market, it may also be that Ford's "head shot" has not been fired. The Mustang Mach-E is Ford's world's first pure electric SUV model, with the "Mustang" brand halo on its head, and is regarded as a representative model of Ford's electrification transformation.
But since it was delivered in the Chinese market at the end of last year, the Mustang Mach-E (Ford electric horse) delivered 3,576 units in the first half of the year, an average of less than 600 units per month. The Tesla Model Y, the benchmark model of the Mustang Mach-E, sold over 130,000 vehicles in China in the first half of this year. In other words, the half-year delivery of Model Y is equivalent to 37 times that of the former.
Cui Dongshu, Secretary-General of the Passenger Federation, said that Ford Motor will launch its research and development in China, and emphasized that it will create products that meet the needs of Chinese consumers, hoping to produce localized products to promote sales in the Chinese market, thereby helping to achieve global sales goals.
In the words of Chen Anning, President and CEO of Ford China, "E-Mach Technology is a brand-new starting point for Ford in China, a source of power to attract local talents in China, and an incubator for Ford's subversive innovation. Based on this, D-Mach Technology Not only is Ford's effective deployment of electric vehicles in China, it will also drive a series of development of Ford's localization."
And what will be the "fight" between Ford and Tesla? Everything is yet to be revealed.
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