Monday, November 29, 2010

Ford Motor (NYSE:F) Expanding Big in China

With second-tier and third-tier Chinese cities expected to generate the next growth cycle in China, Ford Motor (NYSE:F) has plans for an additional 66 dealerships in the country to prepare for the growth spurt.

Canaccord said, "The Wall Street Journal reported that Ford is planning to add 66 dealerships in China before the end of the year. The expansion of Ford's China sales effort will focus on what are considered the tier-two and tier-three cities in Western and Northern China. Ford said these cities are relatively unknown outside of China but have populations well over one million and are expected to help lead the next wave of growth in the Chinese economy. By the end of the year, China will have added 100 new dealerships in China with its partner Changan Automobile, by the end of the year. The total number of Ford dealerships in China will be roughly 340 by year-end. The Journal reported that Ford plans to launch four new products over the next three years in China, including the Ford Edge crossover vehicle next month. An executive at Ford said industry sales in China's overall vehicle market are likely to amount to "a little bit shy of 18 million" vehicles this year, from fewer than 13.5 million vehicles in 2009. He expects the growth to continue next year, saying an increase of 10% over 2010 "wouldn't be surprising.""

Ford was trading at $15.98, falling $0.12, or 0.71 percent at 2:31 PM EST.

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