Ford Motor Co. is reportedly planning to bring its Lincoln brand of luxury cars to China for domestic production, with goals to make the country a major market for the line.
According to sources, the international auto manufacturer is currently in talks with its Chinese partner Changan Automobile Group about the possibility of manufacturing Lincoln models in the latter's facilities in Chongqing, USA Today reported. It is also claimed that initial production could start by 2018 if the brand is able to sustain its current growth in the country.
Ford started selling Lincolns in China in 2014 and has sold 11,000 units in 2015. However, all of the units being sold are brought in from the company's overseas factories, which subjects these to a 25-percent import tax. This, in turn, results in the model selling at a higher price when compared to other territories.
For instance, the popular Lincoln Navigator sports utility vehicle sells in China for about twice its price in the United States.
Manufacturing the brand locally would not only let Ford avoid the tariff, but will also help it gain a foothold in China's growing luxury vehicle market, experts said.
Production of the vehicles would also be made easier through the use of the same mechanical components already used for the models being produced there.
When asked to comment, Changan president Zhu Huarong was quick to clarify that his company and Ford have not yet reached a detailed plan for the local manufacturing of Lincolns. Ford itself seconded the comment via an emailed statement.
Meanwhile, Ford announced changes in its China branch's executive officers. Ford Asia Pacific head David Schoch will now also sit in as chairman and CEO of Ford China, Bloomberg reported. He will be replacing Marin Burela, who will be retiring in October.