Ford Motor Company recently announced that its vehicle sales in China, for the third quarter this year, has literally slowed down. The figures say it all - and they don't look good on the books.
Ford Motor Company's revenues in China slowed down from the same time last year by 30.2 percent. The company only managed to roll out 131,061 vehicles in the country in the last nine months this year.
Ford was only able to sell a total of 77,443 vehicle brands in the first quarter this year: Lincoln had 11,617 units sold, while JMC's local model had 42,000 units sold, registering a drop of almost 75 percent compared from the quarter last year.
The drop in sales was largely a result of stock clearance actions in China V Emission Standard testing. The automaker's ongoing misery in mainland China continued to add more troubles to the sluggish auto industry and trade-war politics.
It is also expected that the US-China trade drama would put so much load on the group. In addition, higher raw material costs and increasing taxes could add further pains to the profitability of the product.
The company's stocks have undercut the market to which it belongs over the past year. During this time, the company's stocks decreased by 0.4 percent compared to the 4.2 percent advance of the industry.
Moving forward, following the launch of the "Ford China 2.0" plan, Ford China remains serious on market transformation. The company is looking to build more than 30 versions in the region by the end of 2021. Electric vehicles are expected to be more than a quarter of these types.
In addition, in the third quarter, Ford launched a series of new models such as Focus, Edge and the electric territory that meet customer needs and those in China. Therefore, Ford and Chongqing Changan Automobile Company intend to deepen their partnership and seek to develop new business strategies.
BRP Inc, currently holding the number one spot at Zacks Ranking (for 'Strong Buy'), Lithia Motors and Standard Motor Products, Inc, are some of the strong-ranked stocks in the Auto-Tires-Trucks category.
Lithia Motors is expected to grow earnings by 12.9 percent in 2019. To date, the shares of the company have earned 65.5 percent of the year.
BRP is expected to grow earnings in 2019 by 17.3 percent. To date, the shares of the company have rallied nearly 53 percent for the year.
Standard Motor's earnings growth rate for the year is forecast to hit 22 percent. To date, the company's shares have risen around 17.4 percent.
Meanwhile, Ford China has been focused on shuffling the region's executives to give way for the natives. Throughout China, Ford is also considering launching new models and customizing them to the market. To turn things around in the mainland, Ford will have its hands full, but figures show that the revamp is working.
