Ford Tried to Sell the Electric Mustang to China the Tesla Way—It Didn’t Work
After years of sales troubles in China, Ford Motor saw a chance to ride the tide of electrification to arrest its demise. From around 2020, the automaker followed Tesla’s formula of bypassing dealers to sell its cars directly to consumers. It introduced the Mustang Mach-E—an electric SUV with the iconic galloping horse logo, which Ford’s executives saw as a strong competitor to Tesla’s EVs.
Three years later, Ford remains an also-ran in the world’s biggest auto market, prompting the company to recalibrate its China strategy yet again. In August, Ford pulled the plug on its direct-sales business. The Mach-E hasn’t fared well, with sales at a few hundred a month this year, far behind the tens of thousands of vehicles offloaded each month by Tesla and many Chinese rivals.
Ford’s market share in China was 2% last year, with sales down 61% from 2016 on a wholesale basis. People familiar with Ford’s China business point to flawed marketing and sales strategies, such as not giving the Mach-E a Chinese name and underestimating how crowded the EV market would become. They also point to execution problems, including Ford’s slowness in introducing direct-sales stores.
The Mach-E also didn’t have the best features among rival cars in a similar price range. “Their EV strategy for China was the Mach-E. When that didn’t work out, they didn’t have anything," said Tu Le, founder of consulting firm Sino Auto Insights.
A Ford spokesman said the automaker is developing localized EVs and working with its joint venture partners to strengthen its EV business. The company is “nimble and decisive enough to pivot to a new plan," he said. CEO Jim Farley has said he plans to narrow Ford’s focus in China to commercial vehicles, shrink spending,
. Read more on livemint.com
