Ford Motors is adding 100 more dealers to its inland network in China expecting record sales there, rather than the coastal areas.
The number of dealers in China for Ford will now climb up at 340, in a more forceful move than initially announced, said Joe Hinrichs, president for Ford’s Asia and Africa operations. The original target was 310.
He said that after a thorough study they decided that they needed to be more aggressive saying more dealers will be added in 2011.
The smaller cities in China are becoming as important for the automakers as the big coastal ones.
In 2009 there was an increase of 67.7 percent and 56.6 percent in tier 3 and tier 2, respectively. The increase in tier 1 was 42.6 percent, according to Chinese industry experts.
In smaller cities where people are more price sensitive, the Ford Fiesta with the price of 78,000 to 110,000 yuan is selling extremely well.
Inland China is also becoming a bigger market for other car manufacturers.
Nissan and its partner Donfeng Motor Group have unveiled a new brand, Venucia, while this week General Motors made public its Baojun 630 sedan.
Ford can contend in diverse market sectors and it will present many new projects in 2011, said Hinrichs.
He said that Jiagling Motor Corp, who produces of Ford’s Transit, also complimented their portfolio.
Volkswagen and GM were already present on the Chinese market, but Ford, which was the only carmaker not to be bailed out, is somewhat of a newcomer. New facilities are constantly being added up by for, with a new green field car plant and an engine plant under construction with its partners Chongging and Mazda, with Jiangling also adding a 300 million dollars facility.
Ford and its partners had a 39 percent growth in the first 10 months, selling 468,754 units, 34.8 percent higher than the overall gain of the Chinese market.
Over the same period, Toyota sold some 643,599 vehicles, up 17 percent year-on-year.
Ford will have a record year, said Hinrichs, but he declined to reveal any details.
