Core Points - Ford China has established a wholly-owned subsidiary, Ford Sales and Service (Shanghai) Co., Ltd., to manage marketing, sales, and service for Ford brand passenger cars and pickups in China, starting operations on October 1 [2] - The appointment of Chen Xiaobo as president of the new subsidiary indicates a strategic shift in Ford's operations in China, consolidating sales channels [2][3] - The signing of a distribution service contract between Jiangling Motors and Ford Sales and Service Company allows the latter to distribute vehicles produced by Jiangling [3] Summary by Sections Company Structure and Management - Chen Xiaobo has joined Ford China as the president of Ford Sales and Service Company, reporting to Wu Shengbo, the CEO of Ford China and the International Markets Group [2] - The establishment of Ford Sales and Service Company signifies the consolidation of Ford's sales channels in China, which had previously been fragmented between two joint ventures [3] Financial Performance and Challenges - Jiangling Ford Technology Company has been operating at a loss since its inception, with reported revenues of 1.24 million, 6.43 million, and 53.23 million from 2022 to 2024, and net losses of 1.06 million, 8.39 million, and 6.77 million respectively [4] - Cumulatively, Jiangling Ford has incurred losses of approximately 1.62 billion over three years, with total assets of about 875 million and negative net assets of 1.42 billion as of mid-2023 [4] Strategic Adjustments - The formation of Ford Sales and Service Company aligns with Ford's global strategy to reduce investments in China and focus on high-return businesses, as stated by CEO Jim Farley [5] - The integration of sales channels is seen as a necessary step for Ford to streamline operations and improve profitability in the Chinese market [5][6] Future Outlook - The new sales service company will unify the sales of various Ford models, including those from Jiangling and Changan Ford, and will oversee the rebranding of over 380 4S stores [5][6] - The transition to a unified sales model aims to enhance brand identity and operational efficiency, although challenges remain in balancing the different product attributes of Changan Ford and Jiangling Ford [6]