Ford Motor Company (NYSE:F)’s Lincoln Brand Triples Sales In China

Ford Motor Company (NYSE:F) is considering setting up a production plant in China amid reports that its Lincoln luxury brand has tripled in Sales.

Story continues below

Ford stated that sales from its Lincoln brand in China tripled to 8,546 vehicles in the third quarter. The company also reported that the sales for the first three quarters went up by 191% and a total of 21,000 vehicles were sold. The automotive manufacturer also stated that it has been working towards launching 65 Lincoln stores before the end of 2016. It also plans to expand to 80 stores by the end of 2017.

Despite the success that the company has experienced in China with triple growth numbers, it is still behind the Cadillac brand which is owned by General Motors Company (NYSE:GM). German manufacturers have also been performing better than Ford in China. This is perhaps because those firms established their presence in China before Ford. GM sold 12,500 Cadillacs last month alone in China. GM sales for the Cadillac brand were three times higher than Ford’s Lincoln sales.

Despite falling slightly behind its competitors, Ford is determined to push its fortunes in the country. The American manufacturer is hoping that the Lincoln Continental sedan will help boost sales in China. Production in China would also be beneficial to the company because it would bring down costs and at the same time allow the company to easily serve the Chinese market.

Producing locally will help the firm to avoid hefty import taxes. It will also offer benefits to the local population such as job opportunities among others. Ford is hopeful that the sales performance of its vehicles will continue to improve and thus the need to gear up to take advantage and push for more margins.

“You’re always looking for ways to optimize your business,”stated Amy Marentic, the President of Lincoln China.

Ford stocks closed the latest trading session at $12.12, down by $0.17 or 1.38% compared to the stock price during the previous close.

An ad to help with our costs