Ford Misses Out On Chinese Lust For Pony Power

Bertel Schmitt
by Bertel Schmitt

GM is smarter than Ford when it comes to exploiting rich Chinese, says Tycho de Feyter of Carnewschina. While GM sells is Camaro in China for a whopping $72,000 on up, Ford is leaving money on the table and profits to grey importers.

The Price Of MuscleModelChina RMBIn $US MSRP $2013 Mustang V6568,00089,97122,200Boss 3021,168,000185,01142,995Shelby GT 5001,248,000197,68354,995Camaro 3.6 V6455,80072,19923,345

Says Tycho:

“Ford does not export the Mustang to China. However, it is relatively easy to get one via the thriving gray market. I went to a small dealer show in Beijing a while back and received a nice brochure from a Beijing-based Ford Mustang dealer. Not cheap; the 2013 Mustang V6 goes for 568.000 yuan. China’s high import taxes account for about 25%. Things get even madder with more expensive Mustangs…”

The 25 percent tariff is not all. There is a car sales tax of up to 40 percent depending on engine size. Also, there is a 17 percent value added tax. Lastly, there is the matter of the punitive tariffs China slapped on U.S. car exports. However, rumor has it that some taxes remain unpaid, especially in the netherworld of grey imports.

Despite the hefty taxes, rest assured that there is plenty profit in those grey imported Mustangs, profits that is shared by West Coast dealers who and by Chinese grey importers. On the GM side, that profit stays with Chevrolet. Says Tycho:

“Ford finally did take notice earlier this year and might or might not be considering importing the Mustang to China, but it won’t be anytime soon. Strangely, Ford decided to sell the Mustang in cash-stripped Europe first, where road tax for big American cars is very high and where their image very low. China would snap up many more Mustangs …”

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Juniper Juniper on Sep 16, 2012

    What kind of scale are we talking? 5000 a year, 500, 50, 5?

  • Dimwit Dimwit on Sep 16, 2012

    Based on the evidence, Ford is scared of China. Whether it's their wonderful IP reputation or just the sheer headaches from the bureaucracy but it's clear that Ford is keeping far away.

    • See 2 previous
    • Ranwhenparked Ranwhenparked on Sep 16, 2012

      @Dimwit Chang'an Ford Mazda builds the Ford Maverick, Focus, Fiesta, and Mondeo for the Chinese market, along with the Mazda2 and 6. Ford owns 35%, Mazda 15%, Chang'an 50%. Current plans are to split it in two 50-50 ventures, Chang'an Ford and Chang'an Mazda, with each taking one of CFMA's two assembly plants. Chang'an Automobile is China's 4th largest automaker, and a wholly owned subsidiary of China Weaponry Equipment. They sell their own models mostly under the "Chana" brand, which actually look quite modern.

  • Joe This is called a man in the middle attack and has been around for years. You can fall for this in a Starbucks as easily as when you’re charging your car. Nothing new here…
  • AZFelix Hilux technical, preferably with a swivel mount.
  • ToolGuy This is the kind of thing you get when you give people faster internet.
  • ToolGuy North America is already the greatest country on the planet, and I have learned to be careful about what I wish for in terms of making changes. I mean, if Greenland wants to buy JDM vehicles, isn't that for the Danes to decide?
  • ToolGuy Once again my home did not catch on fire and my fire extinguisher(s) stayed in the closet, unused. I guess I threw my money away on fire extinguishers.(And by fire extinguishers I mean nuclear missiles.)
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