Ford Motor Company (NYSE:F)’s Focus Sedan Gets Success in China, General Motors Company (NYSE:GM) To Consolidate With SAIC Motor

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The renowned US automaker, Ford seems happy with its Focus sedan success in the Peoples Republic of China as company claims the vehicle sales almost doubled last month from prior year. In an official statement Ford Motor Company (NYSE:F) said it sold 61,475 commercial vehicles and passenger cars in China last month that marks 98 % growth from prior year.

Commercial vehicle deliveries were 17,128 units with 42 % rise while 44,439 passenger cars were sold during the period with 135 % increase. Company’s chief of global marketing and Lincoln Jim Farley said Ford plans to launch the luxury Lincoln brand in China next year.

In the country Ford plans to launch another Chinese produced SUV the EcoSport by the end of March. Last month Ford started selling the Kuga brand that went pretty well. Company also intends to import two other SUV models, the Explorer and Edge.

General Motors company is interested in acquiring ailing automakers amidst the Chinese auto industry is overdue for consolidation. The sources disclosed that US automaker plans to consolidate with SAIC Motor Corporation to gain strong hold in the market.

General Motors Company (NYSE:GM) targets to expand sales to 5 million or 75 % by 2015. GM is the top foreign carmaker in China and deals like this could effectively expand its ventures in the country.

By the end of 2014 SAIC and General Motors have plans to open two assembly plants in China. Even with such expansive development both companies will be able to make nearly 4 million cars, micro vans and sport utility vehicles a year. In order to achieve the 5 million units production target both companies decided to take over assembly plants that are not operating at full production capacity.

Ford shares fell -0.53% to $13.11, GM shares fell -0.98% to $28.30 in current trading session.


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