In an attempt to breathe life into its underperforming operations in the largest car market in the world, Ford has named a new president and CEO of Ford China along with plans to break the China business away from its from Asia Pacific unit overall.

“Success in China is critical as we reposition our global business for long-term success,” Ford CEO Jim Hackett said in a prepared statement. “With today’s actions, we are strengthening our commitment to the China market and reorganizing our international markets to strengthen their performance.”

Ford China, under the direction of veteran auto executive Anning Chen, will report directly to Ford global headquarters in Dearborn. The news was announced in China at 8 p.m. Detroit time Tuesday in the U.S. and 8 a.m. Wednesday in Shanghai.

By making Ford China a stand-alone business unit, Ford is hoping to accelerate Ford’s “return to profitable growth in China … a key pillar of Ford’s global strategy,” the company said. The position is “focused on leading China’s turnaround plan.” The new format is meant to allow for greater focus on the market, faster decisions and increased Chinese leadership within the company.

“China commands its own leadership and focus,” Jim Farley, president of Ford global markets, said in prepared remarks.

Chen, 57, assumes the new role effective Nov. 1. He has experience with alliances and joint ventures and product development. He will lead the company’s operations in greater China, including all import and joint venture operations. Prior to this role, Chen served as CEO at Chery Automobile Ltd., and chairman of the board of directors, Chery Jaguar Land Rover, Automotive, China.

Meanwhile, Peter Fleet, president of Ford Asia Pacific, will oversee the creation of a new international markets business unit that will initially encompass existing Asia Pacific businesses outside of China — including Thailand, Australia, India, Philippines, New Zealand, Vietnam, Korea — and other markets globally “which will be the subject of a future announcement.”

Ford says it is “entering a busy period of product renewal in China, including the current high-volume launches of Ford Territory, Ford Focus and Ford Escort." It’s part of Ford China’s commitment to launch 50 new vehicles by 2025.



In addition, Ford plans to:

Increase local production for Ford and Lincoln.

Invest significantly in China-led engineering and research and development.

Create a new joint venture with Zotye for a new line of small battery-electric vehicles

Analysts praised news of the changes at Ford China.

“Ford desperately needs to become much more relevant in China than it has been so far in order to remain more than just a North American stronghold,” said Jon Gabrielsen, a market economist who advises automakers and auto suppliers. “And as recent market share losses from their already far too small share of 4.2 percent in the first place indicate, this move is critical and absolutely has to succeed.”

Ivan Drury, senior manager of industry analysis at Edmunds, said breaking off Ford China "makes sense, given the vast market. This is definitely a step in the right direction. It can only help."

In January 2018, Ford China CEO and chairman Jason Luo abruptly resigned from the company.

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The resignation occurred less than a week after a disappointing annual earnings report that included declining sales in China.

“Jason offered his resignation for personal reasons that predate his time at Ford," Fleet said at the time. "Ford accepted Jason’s resignation as the right way for him and the company to proceed. Jason’s decision was not related to the business strategy or performance of Ford China, which remains robust, with a bright future ahead. We continue to act in the best interest of our company, employees, and stakeholders.”

Fleet assumed the helm as Ford worked to build its business in China.

Sales data from Ford Asia was the subject of criticism on Wall Street.

In 2017, sales in China were down 6 percent from 2016, with nearly 1.2 million vehicles sold.

Annual 2017 sales for Changan Ford Automobile (CAF) dropped 14 percent compared with the full year 2016, totaling nearly 827,000 vehicles.

Sales fell year over year every month of the third quarter of 2018, falling 43 percent in September compared with the same month a year before.

Fleet, who was acting Ford China CEO, became group vice president and president, Asia Pacific, in July 2017. He has led all of Ford’s operations and partnerships in Asia Pacific while reporting to Farley.

Contact Phoebe Wall Howard: 313-222-6512 or phoward@freepress.com. Follow her on Twitter @phoebesaid