Core Viewpoint - Jiangling Motors has announced a partnership with Ford Motor to provide comprehensive distribution services for Ford-branded passenger cars and pickup trucks in the Chinese market, marking a significant step in Ford's strategy to integrate its operations in China [1][2]. Group 1: Company Strategy - The announcement is part of Ford's broader strategy to consolidate its operations in China, integrating Jiangling Motors, Changan Ford, and Ford imported vehicles under the newly established Ford Automotive Sales Service (Shanghai) Co., Ltd [2][3]. - This integration aims to streamline marketing management and reduce internal competition, addressing the increasingly fierce competition in the Chinese automotive market [2][3]. Group 2: Market Impact - The new company will manage over 380 dealerships, enhancing the product line available to consumers and expanding the reach of both Jiangling Ford and Changan Ford [2]. - The integration is expected to provide a more comprehensive product offering for dealers and consumers, allowing for better market penetration [2][3]. Group 3: Historical Context - Previous attempts at channel integration, such as the establishment of the National Distribution Service Department (NDSD) in 2018, were limited in scope and ultimately unsuccessful [2]. - The current initiative represents a more decisive and thorough approach to channel integration, reflecting the changing dynamics of the automotive market in China [3].

Core Viewpoint - The news reflects Ford's strategic confusion and survival desire in the Chinese market, highlighted by rumors of merging its joint ventures, Jiangling Ford and Changan Ford, amidst operational pressures [2][4]. Group 1: Merging Rumors and Responses - On June 18, rumors emerged that Ford China was integrating Jiangling Ford into Changan Ford, with actions already taking place at the sales and channel levels [3]. - Ford China responded to the merger rumors on June 19, emphasizing its commitment to building a sustainable sales service network as a core part of its long-term strategy in China [4]. Group 2: Historical Context and Challenges - Jiangling Ford and Changan Ford are both joint ventures of Ford in China, with Changan Ford established in 2001 and Jiangling Ford in 2021, complicating any potential restructuring due to intertwined shareholding [5]. - Previous attempts at channel integration, such as the establishment of a national distribution service agency in 2018, faced resistance from dealers and ultimately led to the cancellation of plans for a unified sales company [6]. Group 3: Current Market Dynamics - The Chinese automotive market is undergoing a brand restructuring wave, with various companies, including SAIC and BYD, integrating their operations to enhance efficiency [8]. - Ford's sales in China peaked in 2016 at 957,400 units but plummeted to 184,000 units by 2019, prompting strategic adjustments including capacity cuts and a focus on exports [9]. Group 4: Future Strategies and Adjustments - In 2024, Changan Ford's sales reached 247,000 units, a 5.97% increase, primarily driven by overseas markets, indicating ongoing challenges in the domestic market [9]. - Lincoln China is also undergoing channel reforms, including reducing the number of 4S stores to ensure efficient resource allocation [10]. - Ford's electric vehicle strategy has faced challenges, with limited model availability and mismatched sales channels, complicating its market position [10]. Group 5: Conclusion on Integration Efforts - While channel integration may not resolve fundamental issues, it could help eliminate unnecessary obstacles for Ford's future actions in the Chinese market [11].