Changan Automobile in talks to export China-made Ford vehicles

• Source: Global Times
• [08:24 January 30 2011]
• Comments

Joe Hinrichs, president of Ford's Asia and Africa operations, said at the Detroit autoshow that the US automaker intended to introduce 50 new products and power trains in the region in the next four years, its most aggressive move in Asia so far.

"China remains the main focus for foreign automakers. But export deals would serve as an additional income source at a time when the market is slowing down," analyst Boni Sa with IHS Automotive said.

The Chinese government issued a massive package of stimulus measures at the height of the global financial crisis in 2009, including tax incentives for small cars. The incentives were scaled back in 2010 and scrapped at the beginning of this year.

Beijing municipal government's recent move to impose quotas on new car registrations and possibly similar moves by other big cities to tackle traffic gridlock will apply the brakes on the market.

Many industry insiders expect the market to grow 10-15 percent this year, after jumping 33 percent and 53 percent in 2010 and 2009, respectively, but some have projected a decline this year of more than 10 percent.

Reuters