Why did Ford move to China?
Ford moved into China to access the world’s largest car market, localize production to reduce costs and tariffs, and partner with Chinese firms to capitalize on the country’s rapid advancement in electrified vehicles and connected-car technology.
Context: China’s importance to the global auto industry
China represents the single biggest growth engine for automakers, with a massive and increasingly discerning consumer base. Local policies encourage domestic production, joint ventures with Chinese firms, and the development of new-energy vehicles, shaping how foreign brands compete and scale in the market.
For Ford, entering China meant more than selling cars—it required building local manufacturing, establishing distribution networks, and aligning with a regulatory framework that prioritizes collaboration with local partners and investment in China’s evolving auto ecosystem.
Ford’s approach and rationale in China
Below are the main forces that shaped Ford’s decision to operate in China and how the company built its footprint there.
- Access to the world’s largest automotive market and rising demand for SUVs and passenger cars.
- Localization to reduce import tariffs, transportation costs, and currency risk, helping Ford offer competitive pricing.
- Regulatory incentives and requirements that favor joint ventures with Chinese automakers for market access.
- Partnerships with established local manufacturers to gain scale, supplier networks, and distribution channels.
- Strategic focus on electrification and new mobility services, leveraging China’s aggressive push toward EVs and connected-car tech.
- Proximity to Chinese consumers and talent, enabling faster product adaptation and local R&D capabilities.
These factors collectively explain why Ford pursued a local presence in China rather than relying solely on importing vehicles.
Milestones of Ford’s China footprint
Two landmark phases illustrate how Ford built its China strategy around joint ventures and local product development.
- Changan Ford Automobile Co., Ltd. (CFA) was established to manufacture and sell Ford-brand vehicles in China in partnership with Changan Automobile Group.
- Jiangling Ford Motor Co., Ltd. (JMC-Ford) was formed with Jiangling Motors Group to broaden Ford’s production capacity and product lineup for the Chinese market.
- Expansion of Lincoln and Ford’s electrified offerings in China, including localized models and ongoing adaptation to consumer preferences and government policy shifts in the 2010s and 2020s.
These milestones show Ford’s path to scale, localization, and a broader product ecosystem tailored to Chinese buyers.
Current status and outlook
Today, Ford operates major China-focused ventures—Changan Ford (CFA) and JMC-Ford—while pursuing electrification and connected-car initiatives through its local partnerships. The company continues to localize R&D, expand its vehicle lineup for Chinese consumers, and deepen supplier and battery-partner relationships to support a growing portfolio of electrified models.
The road ahead for Ford in China is shaped by the country’s ongoing EV transition, regulatory evolution, and the need to compete with both domestic and international brands by delivering locally relevant products, technology, and aftersales support.
Summary
Ford’s move into China was driven by the opportunity to access the world’s largest auto market, reduce costs through local production, and align with China’s policy environment that favors joint ventures and electrification. Through CFA and JMC-Ford, Ford built a localized manufacturing and product-development footprint, expanding its presence with Lincoln and electrified offerings. As China accelerates its EV and connected-car agendas, Ford’s emphasis on local partnerships, R&D, and a tailored product mix aims to sustain growth in one of the industry’s most dynamic landscapes.
