Ford to build the next-generation Kuga in China

Article by Christian Andrei, on April 18, 2011

To raise sales in China, Ford Motor Co. will build the next-generation Kuga compact sport-utility vehicle in the country. Ford also plans to increase marketing spending to boost sales.

At the Shanghai auto show, Jim Farley, Ford’s group vice president for global marketing, sales and service, said that Ford wants to ensure that what it spends on advertising “is high enough as a percentage of [its] revenue.” However, he declined to give an exact figure.

The Kuga, a C-segment or compact vehicle, is included in Ford’s plans to present 15 models in China by 2015. Ford also wants to double the number of dealerships to 680 as part of a plan to compete with market leaders -- General Motors Co. and Volkswagen AG.

Farley said that to be considered as a “volume player” in China, it has to implement the C-segment flawlessly. Ford has yet to reveal the production schedules of the Kuga.

J.D. Power & Associates said that Ford has yet to say when China production of the Kuga would begin. Industry researcher said that Ford as a market share of 2.4%, according to industry researcher. Ford expects that market in India will increase by 0.10% Ford anticipates that its Chinese market will brown further this year.

In 2010, Ford's China deliveries increased b 0% to 582,467, surpassing the 32% industry average.The company is banking on emerging markets to help it maintain profits after posting $6.56 billion in net income last year, the most since 1999.

It is creating a new vehicle plant through its China venture in Chongqing and it plans to put up a new engine plant in the southwestern city.

Topics: ford, ford kuga, china

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