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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).

Ford not backing down on MPG-based marketing strategy

The Blue Oval may have to back off a bit from the green messaging. Ford has had to lower fuel-economy ratings on a number of 2013 and 2014 model-year vehicles, namely its hybrids. And that may force the US automaker to rethink some of its marketing strategy, Automotive News reports. Ford has spent much of the year pushing its fuel-efficiency improvements, with everything from a Super Bowl ad saying its Fusion Hybrid gets "almost double" the fuel efficiency of an average vehicle (after the recalculation, it's now more like 75 percent better) to claiming the Fiesta is the most fuel-efficient non-hybrid in the US (it's actually the Mitsubishi Mirage) to stating the C-Max Hybrid gets better fuel economy than the Toyota Prius V (it doesn't). Nonetheless, Ford doesn't plan on changing its mpg marketing emphasis anytime soon, the company said in an e-mailed statement to AutoblogGreen. "Providing customers great fuel economy is a key part of our Ford vehicle DNA." "Providing customers great fuel economy is a key part of our Ford vehicle DNA," the company said. "We will continue to highlight our vehicles features and attributes in our advertising and marketing, which includes fuel economy and fuel-saving technologies like EcoBoost and hybrids." Earlier this month, Ford said it would lower the fuel-economy ratings of models such as the C-Max, Fusion and Lincoln MKZ Hybrids as well as most of the Fiesta line because of mistakes in the company's internal testing data. It was the second change for the C-Max Hybrid. The good news for Ford is that its fleetwide fuel economy is up almost 40 percent from a decade ago, compared to an improvement of around 23 percent for Toyota. Still, while sales of Ford hybrids and plug-ins are about even with last year through the first five months of 2014, C-Max Hybrid sales have plunged 49 percent from a year earlier. Earlier this year, Ford admitted that the first fuel economy downgrade had a negative effect on sales and we can find proof in the numbers. Before that the change was announced, in August 2013, Ford was consistently selling over 2,000 – and sometimes over 3,000 – C-Max Hybrids a month. In September, it dropped to 1,424, then to 1,438 in October. It didn't climb back above 2,000 until May 2014. The second mpg adjustment was announced in June.

Preposed class-action lawsuit targets 'defective' MyFord Touch

A national law firm, Hagens Berman Sobol Shapiro LLP, has filed a proposed class action lawsuit whose presupposition is that MyFord Touch is defective. Specifically, the complaint states that the system - as well as the MyLincoln Touch and MyMercury Touch clones - often freeze, fail to respond to voice or touch commands and have issues connecting to mobile phones.
According to Hagens Berman managing partner Steve Berman, MyFord Touch is a theoretically "brilliant idea" that falls short in actual execution. Said Berman in a press release, "In reality, the system is fundamentally flawed, failing to reliably provide functionality, amounting to an inconvenience at best, and a serious safety issue at worst."
Other MFT issues enumerated within the 41-page filing include problems controlling the window defroster, rear-view camera and navigation system. The suit maintains that Ford is aware of the problem but has yet to submit a workable and acceptable solution to MFT customers. Scroll down if you'd like to read the full press release.