Ford to move Fusion and Mondeo production to China – sources

Foreign Companies

Ford is moving the production of its Fusion and Mondeo sedans to China, sources say.

Ford Motor Co currently has production of said vehicles in Mexico and Spain, for shipping in North America nd Europe. Sources that are familiar to the automaker’s plans revealed that the company will soon use Hermosillo and Valencia, Spain as production sites.

The company said in a statement: “We have no plans to export the next-generation Fusion/Mondeo from China to North America and Europe. Fusion/Mondeo are an important part of the Ford car lineup. We will have more information to share about the next Fusion/Mondeo at a later date.”

The company, however, said in June that some of the production of Focus (imported to the United States) will move from Mexico to China.

In a report by USA Today, however, Ford denied reports that it will be buidling Fusion sedan in China and shipping it to North America.

The company said in a statement that contrary to reports. they have no plans to export the next-generation Fusion and Mondeo from China to North America and Europe.

“Fusion/Mondeo are an important part of the Ford car lineup. We will have more information to share about the next Fusion/Mondeo at a later date,” the statement added.

Ford CEO Jim Hackett is looking into maximizing the profitability of Ford Cars, some of which are not doing well in the market. According to reports, sales of Focus are down 7.2% and Fusion sales are down 22%. One of the possible reasons for these decline is the demand for larger vehicles like trucks and SUV are still preferred by Americans.

In June 2017, Ford announced that it was shifting the production of the Focus compact car–which was originally built in Michigan-from the US to China. It was estimated that the company will save $500 million a year by building it in Chinese plant than a Mexican plant, where the company originally planned to shift production.

Michelle Krebs, senior analyst for AutoTrader, told CNN Money: “Building in China [for the U.S. market] will become more common…The small car market has fallen far more than any one anticipated. Ford needed to find a low-cost way to produce them. They’re already making the Focus in China. This just made sense.”

Author

Ofelia Sta. Maria

Ofelia is an experienced journalist covering the Chinese manufacturing sector for the English language market, sharing news and stories about the companies and people shaping the future of manufacturing in China.

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