In a bid to seize China's love affair with western brands, U.S. luxury car brand Lincoln unveiled plans to open a Chinese factory by the end of 2019. The move is part of Lincoln's plans to gain a greater market share of the world's luxury car market.
Lincoln, like Cadillac, has a stodgy reputation among American consumers, many of which prefer the likes of German giants BMW, Mercedes-Benz, Audi, and Japanese brand Lexus. But the Ford-owned luxury brand now sees China's preference for U.S. brands as a saving grace for its flagging domestic fortunes.
Lincoln's parent Ford Motor Co. identified the city of Chongqing as the location of the luxury brand's planned factory. The American motoring giant already owns a factory in the city, made possible through a partnership with Chinese automaker Changan Automobile Group Co.
Along with plans for a new factory, Lincoln also plans to produce an all-new luxury SUV tailor-fit for the Chinese automobile market, as it goes head-on with Cadillac. General Motors' luxury car unit has been praised in China for its "long heritage and pedigree," a factor Lincoln also plans to maximize for itself.
The decision to build cars in China comes after Ford canceled its plans to build a factory in Mexico due to U.S. President Donald Trump's pronouncements for American businesses to produce their products at home, which comes with the risk of penalties and for violators, Fox Business reported.
Nonetheless, a Ford spokesman insisted on the brand's China automobile market plans, saying that the move is in line with its brand philosophy of producing cars in markets where it sells. Additionally, Ford still plans to export U.S.-made Lincoln cars to China, even as it starts selling its China-exclusive luxury SUV.