Ford Intensifies China Growth Plan: More Smart Vehicles, Expanded Local Production, Leaner Business Structure

• Ford is introducing more than 50 new vehicles in China by 2025,
  including eight all-new SUVs and at least 15 electrified vehicles from
  Ford and Lincoln; in addition, the new Zotye-Ford JV will launch an
  all-new range of affordable all-electric vehicles
• The company plans to locally assemble five more vehicles in China for
  Chinese customers starting in 2019, including a Lincoln premium SUV
  and the company’s first global all-electric small SUV; also rapidly
  increasing engineering and R&D capability in China to support the
  aggressive growth plan
• All new vehicles in China to be internet-connected by end 2019. Ford
  continues working with Baidu on autonomous vehicle development
• New single distribution services division planned to launch next year,
  designed to deliver an enhanced experience for customers and improved
  brand consistency while reducing costs

SHANGHAI–(BUSINESS WIRE)–Building on a decade of significant investments and growth, Ford today
outlined the next phase of its China expansion strategy, focused on
SUVs, electric and connected vehicles, a streamlined business structure
and closer connections to Chinese customers.

Executive Chairman Bill Ford and CEO Jim Hackett shared the vision today
while in China this week to meet with employees, customers, dealers and
government officials.

“China is not only the largest car market in the world, it’s also at the
heart of electric vehicle and SUV growth and the mobility movement,”
said Bill Ford. “The progress we have achieved in China is just the
start. We now have a chance to expand our presence in China and deliver
even more for customers, our partners and society.”

Added Hackett: “Ford’s aspiration is to become the world’s most trusted
mobility company, designing smart vehicles for a smart world. We are
very excited to see this vision come to life in China.”

To enable future growth in China, Ford will contain structural cost in
the region throughout 2018, aiming to generate greater efficiencies,
become more operationally fit and deliver additional value to
shareholders.

Even as the team works to streamline, Ford plans to grow its China
revenue by 50 percent by 2025 versus 2017 and is focusing its business
expansion on three areas: even more smart, connected vehicles; closer
connections to Chinese customers, and a streamlined business structure.

Even More Smart, Connected Vehicles: The company plans to offer
more than 50 new Ford and Lincoln vehicles in China by 2025.

The expanded product portfolio will reflect an even stronger emphasis on
SUVs – with eight all-new utilities, along with more electric vehicles.

The company will launch at least 15 new electrified vehicles from Ford
and Lincoln. And the new Zotye-Ford joint venture will deliver a
separate range of affordable all-electric under a new brand, pending
regulatory approvals.

“From luxury Lincolns, to Ford cars and SUVs, to an all-new electric
vehicle brand, we will meet the growing desire and need in China for
great new energy vehicles,” said Jason Luo, chairman and CEO, Ford
China. “Each of them will be safe, efficient, fun to drive and backed by
an ecosystem that makes charging, sharing and servicing easy.”

Plus, by the end of 2019, 100 percent of new Ford and Lincoln-badged
vehicles in China will be connected through either embedded modems or
plug-in devices. Company leaders also are working on broader
infrastructure opportunities to improve future mobility experiences.

Ford is one of the founding members of the Board of Baidu’s Project
Apollo, building on the agreement signed earlier this year. The Apollo
Open Platform accelerates the development, testing and deployment of
autonomous vehicles. Ford’s participation supports the company’s
robotics and artificial intelligence research efforts and provides an
opportunity to contribute to a platform that will be key to developing
autonomous vehicles in China.

“We are responding to the rapid pace of change by delivering increased
connectivity and working to improve and simplify mobility for everyone,”
Hackett said. “This builds on our commitment to deliver smart vehicles
for a smart world, helping people around the world move more safely,
confidently and freely.”

Closer connections to Chinese customers: In 2019, the company
starts producing five additional Ford and Lincoln models in China for
Chinese customers, including a new Lincoln premium SUV, and the
company’s first global fully electric small SUV.

Producing vehicles locally speeds time to market, while providing
greater opportunities to fully leverage the local supply base. It also
allows Ford to further tailor vehicles to more closely meet the needs of
Chinese customers.

“Some of our most advanced manufacturing and innovation facilities are
here in China,” said Peter Fleet, group vice president and president,
Ford Asia Pacific. “Producing more vehicles for China locally allows us
to improve the benefits for our customers, our partners and our bottom
line.”

Ford last month opened the Nanjing Test Center, which furthers product
development capability and innovation in China. The test center – which
includes close to 80 different types of real road surface conditions, a
three-kilometer test track and a sophisticated emissions testing
facility, will allow Ford to speed development of new products, services
and technologies to meet the unique driving requirements of Chinese
customers.

The company also is committed to improving the ownership experience for
customers with the launch of Quick Lane, its global fast, high-quality
service provider.

The first two outlets open in Nanjing and Chongqing this month, offering
routine vehicle maintenance such as oil and filter changes, light repair
services including brake repair and tire replacements on all vehicle
makes and models. Ford plans to open 100 new outlets next year.

Streamlined Business: Ford is strengthening ties with its joint
venture partners Changan and Jiangling in 2018, establishing one
distribution services division responsible for the marketing, sales and
services associated with all Ford vehicles sold in China.

The new distribution services division will seek to offer a simplified,
improved and consistent customer experience for all Ford customers in
China.

Lincoln, which has become the fastest-growing luxury brand in China,
remains a stand-alone consumer-facing brand and maintains its separate
dealer network to offer the brand’s unique “Lincoln Way”
one-size-fits-one customer experience.

“Now is the time to deepen the partnerships we have with Changan and
Jiangling Group and present one Ford brand in China,” Fleet said. “The
new distribution services division will enable us to offer an enhanced
experience for our customers and more closely connect with our dealers
and the community.

“All of the actions outlined today reflect an unprecedented commitment
to focus on the needs of consumers in China through a more fit and
streamlined Ford,” he added. “They are proof of our dedication to grow
our business in China.”

About Ford Motor Company

Ford Motor Company is a global company based in Dearborn, Michigan.
The company designs, manufactures, markets and services a full line of
Ford cars, trucks, SUVs, electrified vehicles and Lincoln luxury
vehicles, provides financial services through Ford Motor Credit Company
and is pursuing leadership positions in electrification, autonomous
vehicles and mobility solutions. Ford employs approximately 203,000
people worldwide. For more information regarding Ford, its products and
Ford Motor Credit Company, please visit www.corporate.ford.com.

Ford's wholly owned subsidiaries, joint ventures and investment in
China include Ford Motor (China) Limited, Ford Motor Research &
Engineering (Nanjing) Co., Ltd., Ford Automotive Finance (China) Ltd.,
Changan Ford Automobile Co., Ltd., Changan Ford Mazda Engine Co., Ltd.,
Jiangling Motors Co., Ltd., and Zotye Ford Automobile Co. Ltd. Subject
to regulatory approval, Zotye Ford will produce small all-electric
vehicles under a new indigenous brand.

For news releases, related materials and high-resolution photos and
video, visit www.media.ford.com.

Contacts

Ford Motor Company
Sinead Phipps
Asia Pacific Communications
Director
+86 136 8180 2410
[email protected]
or
Bradley
Carroll
Global News Manager
+1-313-390-5565
[email protected]