NY, Beijing auto shows set to kick off


Car makers have been gearing up for two major shows this weekend: the New York International Auto Show, which starts today, and the Beijing International Automotive Exhibition, or Auto China 2014, which starts on Sunday.

Ford's (F) Lincoln, which plans to formally enter China’s luxury market later this year, will unveil a new model in Beijing, the first time it has introduced a car outside of the U.S.

New York show preview

Tickers: F, GM, TM, HMC, CARZ, FIATY, PEUGF, BAMXF, DDAIF, HYMLF, NSANF, VLKAF, RNSDF, FIATY

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Comments (10)
  • David at Imperial Beach
    , contributor
    Comments (4382) | Send Message
     
    Bloomberg has a better article about Lincoln's entry into China, but note the date: http://bloom.bg/1r4CFrM

     

    This article reads like a regurgitation of the Ford press release, but some people may find it helpful: http://bit.ly/1r4CFI1
    18 Apr 2014, 09:07 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4531) | Send Message
     
    General Motors cars should go over well in Beijing, where safety and human life is a mere inconvenience. It's the Peoples Republic of China, where they feed babies poisoned milk, and choke on lethal smog, and dispatch hundreds of newborn infant girls to the drowning waters of rice paddies every year. …funfun..
    18 Apr 2014, 09:49 AM Reply Like
  • cross
    , contributor
    Comments (1378) | Send Message
     
    So much of the success of a company in China depends upon currying the favor of government. The biggest reason, IMO, that Ford is going to be a great success is that the Chinese HATE the Japanese, and are loath to drive a Japanese car.
    The problem with doing business in China is that foreign companies generate lots of revenue there with little in the way of profit. Ford itself is not a single entity but partnered up with a Chinese counterpart. I wonder at the end of the day if selling cars in China is going to be profitable for any foreign company.
    18 Apr 2014, 11:16 AM Reply Like
  • Tdot
    , contributor
    Comments (8679) | Send Message
     
    Ford is already showing a profit in China, and Asia as a whole - earning $415M on $11.8B in revenues on the sale of 1.344M vehicles during 2013.

     

    It is true that the Chinese Government is "using" the US and German automakers to build up a world class domestic automotive industry for their home market, which is by far the largest in the world. Ford is partnered with Jiangling Motors Corporation, and has been for some 17 years now. Jiangling provides the factories and labor, while Ford provides guidance in building Ford's global vehicles with relatively minor modifications tailored in and for the Asian markets.
    18 Apr 2014, 12:51 PM Reply Like
  • wiseone123
    , contributor
    Comments (461) | Send Message
     
    Any idea why Ford doesn't produce F-150s and/or Ranger trucks in China with all the Ford partnerships in place? Since all profits and losses must be split 50/50 with the Chinese government, absolute profit levels will always have limitations. Yet selling more Focus, Fiesta and Kuga models there allows structural costs to be spread over many additional units. Potential Chinese volume is so great(still only 81.1 vehicles per 1000 residents as of 12-31-13), that it is not inconceivable that much of the design and engineering of Ford B and C cars will, in the next ten years, be decided and driven by China and not the USA or Europe. Note that the Escort (an old familiar name, to be recast as a Focus with a large back seat) is being introduced at the Beijing Auto Show and that over the long term Ford executives have hinted that someday Lincoln will sell more vehicles in China than in the USA. Lots of long term changes are forthcoming.
    19 Apr 2014, 06:57 AM Reply Like
  • Tdot
    , contributor
    Comments (8679) | Send Message
     
    The F-series trucks and engines are way oversized for the Chinese market, and the Chinese are not especially partial to pickup trucks as much as suburban and rural Americans. Most of the world outside of the US prefers closed cargo vans with small diesel engines, like the Transit and Sprinter, for hauling goods, and they rarely need to tow things.

     

    With the small diesel engines, Ford's Global Ranger is by far preferred to the big American Style V6 and V8 pickup engines, because engine displacements and gasoline engines are heavily taxed in many markets. The Ranger is made in Thailand, among other places, and they are available to Chinese customers who can afford them. There might also be a few F-series trucks exported to China from Mexico or something on special orders, but the costs to do so will be huge - probably selling for well over $100,000 after all the red tape and taxes. But again, they don't really serve any purpose in China as much as a Ranger or Transit might.

     

    Generally the Chinese want to manufacture high volume vehicles domestically, and place hefty penalties on imports, and they throw up a lot of barriers around importing fully assembled vehicles.
    19 Apr 2014, 10:16 AM Reply Like
  • wiseone123
    , contributor
    Comments (461) | Send Message
     
    Any reason why we cannot produce Transit there? Turkey Transit production is primarily for Europe, but with all the construction and the size of the farming industry in China, one would think that the market potential is huge. OR, is the Chinese government restricting trucks/vans to Chinese producers only? Am not fully knowledgeable of the market, but Ford management is silent on this topic.
    19 Apr 2014, 10:50 AM Reply Like
  • Tdot
    , contributor
    Comments (8679) | Send Message
     
    By "we" do you mean Ford? It is. Ford is partnered with Jiangling Motors Co to produce many vehicles in China including Transit. http://bit.ly/1eTmiy9

     

    When you consider Ford's business in China, you must consider their partnership with JMC. Ford is spending billions upon billions in China for the cause.

     

    You need only refer to Ford's press releases and management comments on the activities in China, and there are probably many other activities which are still to be announced as the year progresses.
    19 Apr 2014, 05:47 PM Reply Like
  • Snoopy1
    , contributor
    Comments (1126) | Send Message
     
    China is a nice tailwind for GM and F and this goes unnoticed by many investors. With these companies moving to more cost-sharing global platforms, China will provide a nice long-term boost to U.S. auto company profits.
    20 Apr 2014, 03:49 PM Reply Like
  • funfundvierzig
    , contributor
    Comments (4531) | Send Message
     
    The Chinese have long had a culture of save-face, concealing failures and lying. It's a culture of unbridled lawlessness, bribery and corruption. They think nothing of stealing proprietary technology and patent-protected know-how of western corporations.

     

    General Motors executives and Managers and engineers who have long held themselves above and beyond the laws of the United States should feel right at home in the Peoples Republic, and do rather well. And that is good for GM shareholders.

     

    Merely the perspective one individual investor...funfun..
    20 Apr 2014, 04:52 PM Reply Like
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