The Ford Motor Company Production Catch in China

Once upon a time in America, the Lincoln brand — a sub-section of the Ford Motor Company — was a top name brand luxury car here in Utah and the states. After years of holding strong in the luxury car market, the Lincoln brand has seemed to stagnate and fail to progress with the times. Because of this, Lincoln is becoming a lesser-known brand in its own country. China, however, does not seem to see it that way.

China offers a huge market in the car industry. China’s support for the Lincoln brand seems to be keeping it in the popular realm, at least in Asia. Ford dealers say that this is because the Chinese have a deep and profound respect for the history and the legacy of the brand. The people there place the Lincoln brand above that of Lexus and even Audi. Because of this, the booming industry for luxury cars over in China is expected to not only grow, but even possibly surpass the luxury car market here in Utah and the United States.

Importing cars in China seems to have its own challenges — for instance, there is a 25 percent tariff that applies to all shipments to the U.S. This can take a large chunk out of the net profit that the car companies would have otherwise made. However, if a car company decided to produce those vehicles in China, it could easily avoid the 25 percent tariff — but the catch is that a company would have to partner up with one of the other major Chinese automakers. Luckily, Ford dealers have partnerships with automakers in China which allows them to produce non-premium passenger vehicles there — which is good, but difficult for developing luxury vehicles.

For now, the process of importing these vehicles seems to be working well for Ford dealers from West Valley City, Utah to around the country, but if they ever want to compete in the luxury market, they are going to need to make it easier for automakers in China to have access to manufacturing their luxury Lincoln brand. While 17 percent of China’s auto purchases are financed with loans, over in the states 85 percent of auto purchases, including those in Utah, are financed with loans. This is obviously a drastic difference in how the two cultures approach buying a vehicle. With the people of China tending to go for vehicles they can afford right away, Ford dealers will have their work cut out for them to push premium luxury vehicles to the public. But with the popularity of Lincoln vehicles in China, it seems like it could be done.

Tyler Davis is an automotive writer reporter for Fusion 360, an SEO and content marketing agency. Information provided by Henry Day Ford. Follow on Twitter.