On the evening of September 23, Ford Motor (China) Co., Ltd. (referred to as “Ford China”) officially announced the establishment of a wholly-owned subsidiary—Ford Motor Sales and Service (Shanghai) Co., Ltd. (referred to as “Ford Sales and Service”). The new subsidiary will be fully responsible for the marketing, sales, and service of Ford brand passenger cars and pickup trucks in the Chinese market. The subsidiary is set to begin operations on October 1.
At the same time, Ford China announced that Chen Xiaobo will officially join Ford China as the President of Ford Sales and Service, reporting to Mr. Wu Shengbo, President and CEO of Ford China and the Ford International Markets Group. According to official information, Chen Xiaobo has extensive experience in the automotive industry. Before joining Ford China, he held several key positions in marketing and sales management, including Vice President and General Manager of the Marketing Center at Changan Ford New Energy Technology Co., Ltd., and Executive Vice President of Changan Ford’s national sales and service network. He has also held senior management positions at Changan Automobile and Renault China. Chen Xiaobo joined Changan Ford in 2004 as part of the sales department and was promoted to Director of the Marketing Department in 2013. He left Changan Ford in 2017 to join Dongfeng Renault, where he worked in Renault Asia Pacific, Renault China, and Dongfeng Renault in various sales and marketing roles. In June 2020, Chen Xiaobo returned to Changan Automobile as Deputy General Manager of the Passenger Car Division and quickly returned to Changan Ford as Vice President of the National Sales and Service Network and Sales and Operations Director.
Regarding Chen Xiaobo’s appointment as President of Ford Sales and Service, Mr. Wu Shengbo stated that Chen Xiaobo brings rich experience in joint ventures, multinational brands, and local brands, as well as overseas market management experience. Having served the Ford brand for many years, his leadership will help the team introduce more new energy products, innovate in sales and service, and enhance the Ford brand image in China, offering more Ford-branded products and experiences to Chinese consumers.
On the same day, JMC (Jiangling Motors Corporation) released an announcement regarding the proposed capital increase for its holding subsidiary and related transactions. The announcement stated that, due to the development needs of the company’s passenger car business, JMC (Jiangling Motors Corporation), JMC Sales Co., Ltd. (a wholly-owned subsidiary of JMC), and Ford Sales and Service Co. have signed the “JMC Domestic Ford Vehicle Distribution Service Contract.” Ford Sales and Service will provide full distribution services for Ford brand passenger cars and Ford brand pickup trucks produced by JMC.
Additionally, JMC plans to increase its capital in the joint venture subsidiary, JMC Ford Automobile Technology (Shanghai) Co., Ltd. (referred to as “JMC Ford (Shanghai)”). JMC will contribute 1.26378 billion RMB via debt-to-equity conversion, while Ford Motor Company will contribute 1.21422 billion RMB in cash to settle JMC Ford (Shanghai)’s liabilities. After the capital increase, JMC will hold 51% of JMC Ford (Shanghai), with its shareholding percentage unchanged.
Ford has two joint ventures in the Chinese market: Changan Ford and JMC Ford. JMC Ford focuses on niche markets such as rugged off-road vehicles and pickups, while Changan Ford is dedicated to the passenger car market, manufacturing popular cars and SUVs such as the Ford Focus, Mondeo, Fiesta, and Explorer. It is worth noting that in June of this year, there were rumors suggesting that JMC Ford would be merged into the Changan Ford system for resource integration, but the official statement quickly clarified that this was untrue. JMC responded by stating that as a listed company, it currently has no plans for asset restructuring. The company also emphasized its ongoing efforts with joint venture partners and dealers to improve operational efficiency and cross-network collaboration to enhance overall profitability.
With the establishment of Ford Sales and Service, it will now be responsible for managing Ford brand passenger cars and pickup trucks’ marketing, sales, and service in the Chinese market.
Regarding the rationale for establishing Ford Sales and Service, Mr. Wu Shengbo explained, “The establishment of the wholly-owned Ford Sales and Service company is a bold innovation and attempt in Ford’s marketing, sales, and service business to face the intense market competition.” He further elaborated that the creation of Ford Sales and Service will strengthen the Ford brand image, deliver a more unified brand experience, provide a more complete product lineup, and establish a more efficient and convenient sales and service network, which will also help improve dealers’ operational efficiency and profitability. Additionally, Ford China stated that as part of a brand strategy upgrade, Ford China and its joint venture partners in China have reached a consensus to strategically innovate their sales and service network. The formation of Ford Sales and Service, a wholly-owned subsidiary, will create a unified Ford brand sales and service network to drive the brand’s upgrade in China.
