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commercial vehicles.
He listed out the partner alliances between China manufacturers and foreign ones. In
2003, the top ten foreign OEM performance accounts for 50% of total China industry,
4.5 millions units. And the top 15 China OEM performance is 99% including foreign
JVs. Mr. Jones pointed out that the net margin is 9.2% in China, which in much
higher than 1.5-2.5% in North America. The high margin is related to high prices than
low costs. Tight supply/demand and high costs are keeping vehicle prices above
international levels. Profits from China are very important to foreign manufacturers.
For example, 17% of Honda‘s global Q303 net profit comes from mainland China
market. The figure for GM (General Motor) and VW‘s (Volkwagen) Q1-Q3 is even
higher to 25% and 34%. But as for as sedan, the market perspective is not so good.
For the capacity is always keeping ahead of the demand. In 2003, the demand is
2176 while the capacity is 2635.Up to 2007, the figures expected are 4009 and 5930.
This will lead to lower prices and margins.
―We must learn how to operate in China-complexities.‖ Mr. Jones said. He talked
about how to deal the relationship between government, competitors and local
partners, analyzed the change of auto policy and preference of Chinese buyers. After
he gave the SWOT of Ford brand, a student stood up and had a discussion with him.
He didn‘t think Ford is a very familiar brand to Chinese by giving the statistical results
of questionnaire or interview to some Chinese.
―No boundaries is Ford brand positioning.‖ Mr. Jones said, ―Genuine, progressive
and smart are Ford brand personality.‖ He introduced the structure of Ford brand
system in detail in the following.
At last, he shared the lessons Ford learned from Chinese market. As for government,
you should maximize relationships with national and local government, remain
flexible and act quickly. As for partnership, it‘s very important to have strong
"connected " partner. Strategic partnership is preferred. You should focus on
communications and long term vision and goals. As for people, MS&S talent is hard
to find to live in Chongqing, where Ford‘s partner Changan Ford lies. They should
have strong willingness to learn and grow. Relocation is more difficult than other
markets. As for products, customers expect latest global product and technology.
High level of features is expected. Traditional " wants‖ are changing. And product
must have low cost base.
―Ford brand is weak today … but good plan for long term success‖. Mr. Jones
concluded.
Mr. Dale L. Jones is in charge of Marketing, Sales and Service. He has held this
position since January 2002. In this capacity Mr. Jones is responsible for developing
the Ford Brand and growing the Ford Motor Company vehicle, parts and service
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