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GM and Ford quarterly sales continue to slump in China

BEIJING — General Motors and Ford announced their quarterly sales in China fell, albeit at a slower pace sequentially, as the U.S. automakers were hit by a slowing economy amid the Sino-U.S. trade war. GM's vehicle sales in China for the quarter ended June 30 dropped 12.2%, while Ford's sales slumped by 21.7%. While GM also suffered from heightened competition in its key mid-priced SUV segment, Ford was hurt by the limited new models for customers to choose from. For the first quarter of this year, Ford's sales in China tumbled 35.8 percent while GM's skid 17.5 percent. Still, the numbers from GM, the second biggest international automaker in China by sales, and Ford portend more uncertainty for the industry which is trying to rebound from a downward spiral that led to its first annual sales decline last year in more than two decades. GM delivered 1.57 million vehicles in China in the January-June period this year, while Ford delivered 290,321 vehicles. China's factory activity shrank more than expected in June, highlighting the need for more economic stimulus amid higher U.S. tariffs and weaker domestic demand. Annual car sales in China fell last year for the first time since the 1990s, and they are expected to fall this year too. Sales tumbled 16.4% in May from the same month a year prior, the China Association of Automobile Manufacturers (CAAM) said. That marked the 11th consecutive month of decline and followed falls of 14.6% in April and 5.2% in March. U.S. car companies' share of total China passenger vehicles sales fell to 9.6% in the first five months of this year from 10.9% in the year-ago period, according to CAAM. Over the same period, German car makers' share has risen to 23.3% from 20.9% and Japanese auto makers' to 21.3% from 17.3%. CAAM is set to announce June sales next week, which industry analysts forecast will be negative.   New models In China, GM has a joint venture with SAIC Motor Corp, in which the Buick, Chevrolet and Cadillac are made. It also has another venture, with SAIC and GuangxiAutomobile Group, in which they make no-frills minivans and have started to make higher-end cars. Sales of GM's affordable brand Baojun dropped 31.8% for the latest quarter. But luxury brand Cadillac's sales jumped 36.6%. GM sold 3.64 million units in China last year, down from 4.04 units in 2017. Ford makes cars in China through its joint venture with Chongqing Changan Automobile Co and Jiangling Motors Corp (JMC).

Mustang parts under the new Lincoln Aviator mean good things for Ford

NEW YORK — As we mentioned last night, underneath the new Lincoln Aviator "concept" there appears to be an independent rear suspension lifted right from the Ford Mustang parts bin. And while it's pretty cool on its face that Mustang rear-drive platform bits are being reused in the broader Ford universe, what this means for the next Explorer could be really cool. A quick caveat: The Aviator here in New York is very close to the production version, but it's not technically a production car. It looks hand-built, with temporary exhaust and some show-car touches. The suspension underneath looks exactly like a Mustang's, but the actual production Aviator will almost certainly use beefier components with the same basic design and geometry, since the Aviator will be much heavier than the smaller Mustang. That being said, we're fairly confident that even at this early stage, the Mustang-derived suspension seen in New York is a preview of what'll be under the production Aviator. Furthermore, Ford won't say it, but based on what we're seeing on Aviator, it's a safe bet that Ford will utilize the Aviator platform for the next Explorer. That would enable the economies of scale necessary to produce a brand new rear-drive-based SUV platform in the first place. It also means that the Explorer should be available without AWD — and given the stable of powerful EcoBoost engines, and the competent 10-speed automatic in the parts bin, a rear-drive Explorer has a shot at being a decent driver. Aviator wouldn't go rear-drive-based if driving dynamics weren't important; Explorer should inherit these priorities. More evidence: The Explorer spy shots we saw back in February sure share the Aviator's general proportions. Even back then, before Aviator was revealed, we were hypothesizing that an EcoBoost 3.5-liter-powered version could boast as much as 400 horsepower, if the Expedition's tune were adopted. Suddenly, the Explorer seems very interesting. So, an EcoBoost, rear-drive Explorer sure sounds like something Ford Performance would be interested in, right? We knew an Explorer ST is coming, but with 365-400 horsepower potential and a chassis designed with dynamics in mind, it doesn't seem like as much of a stretch as the Edge ST. And a performance-oriented AWD system is a possibility, too. That's an area where Ford has been gathering experience at a rapid pace. What do we not expect from a new Explorer? A V8.

Ford C-Max sales hold steady despite fuel economy fracas

Despite the ballyhoo that accompanied Ford's lowering of the C-Max fuel economy figures, the Blue Oval is still seeing strong demand for the five-seat MPV, as Automotive News reports. Speaking to marketing boss Jim Farley, AN says that the controversy surrounding the C-Max's fuel economy figures won't force Ford to change its marketing strategy.
Ford lowered the fuel economy rating of the C-Max after public outcry and legal action by customers that were unable to reach the 47 miles per gallon promised by the window sticker. The new ratings were dropped about a month ago to 45 mpg on the freeway and 40 mpg in the city. Ford offered rebates for current C-Max owners, with $550 going to those that bought their car and $325 to lessees. The issue, says Ford, stemmed from testing standards that allowed the automaker to base the C-Max's fuel economy on the Fusion Hybrid, because they use identical powertrains. The C-Max's less aerodynamic shape wasn't taken into account, though.
Whether Ford's PR team handled the crises perfectly or people just aren't that bothered by a four-mpg drop in combined ratings, demand remains strong for the C-Max among consumers. Ford moved 3,000 units in August, which was a 12-percent jump over July sales. Meanwhile, consumer demand through third-party shopping websites remains strong as well, according to Autometrics, a data analysis company that spoke with Automotive News. While the long-term effects of the adjustments remain unknown, the C-Max appears to have fared well in the near term.