By on September 16, 2012

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 Muscle
Model China RMB In $ US MSRP $
2013 Mustang V6 568,000 89,971 22,200
Boss 302 1,168,000 185,011 42,995
Shelby GT 500 1,248,000 197,683 54,995
Camaro 3.6 V6 455,800 72,199 23,345

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 …”

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18 Comments on “Ford Misses Out On Chinese Lust For Pony Power...”


  • avatar
    el scotto

    I’m smiling as I think of a boatload of Mustangs and F-150s leaving San Pedro or Oakland heading for China. Shelbys, GTs, Convertibles, crew-cab Lariat/King Ranch F-150s in the Middle Kingdom. Oh Yeah.

  • avatar
    TonyJZX

    i can only imagine that Ford have done the sums themselves and worked out it wasnt worth doing

  • avatar
    Trend-Shifter

    Myself I would like the Mustang to be a political football, hear me out…

    We have such a large trade deficit with China. Autos is one of the key components to fix this trade imbalance because of the large dollars involved. As an example, auto exports from Japan is larger than all their electronic exports.

    With that said, use the Mustang as a poster child to prove that China can truly knock down all trade barriers (The written & unwritten bits) and allow this car to be cost effective to be export into China marketplace. We need to open the door for all US manufactured autos into China.

    This is one of our best paths to fix the trade imbalances without pushing them on currencies.

    BTW, I know Ford would not want to do that because they do not want to anger the Chinese government because they will make everything difficult. Our politicians need to do this if they have any Moxie.

    • 0 avatar
      dolorean

      “Myself I would like the Mustang to be a political football…”

      Considering the recent Chinese issue with the Japanese and the growing trend to beat on a Made-in-Nippon import for political hay, I honestly don’t want to see our Mustang take the same bashing.

      However, I also don’t want to see a Chery Moostang reverse engineered, cheap knockoff showing its face on the pages of TTAC.

  • avatar

    ACCORDING TO the republicans and neocons, America doesn’t make cars the rest of the world wants.

    If you cancel out all the anti-union BULLSH you find out that the rest of the world DOES want our cars, but the trade embargos and trade deficits make owning one nearly impossible.

    I live in NYC. When I go out in an S550 or Jaguar XJ-L, no one cares. I take my Chrysler 300 SRT8 out and suddenly I get europeans taking pictures of my car. “Your car is so expensive in my country”.

    And you wanna know why American factory jobs are dying… Yeah – blame the unions.

    • 0 avatar
      Joss

      American factory jobs have either gone robotic or fled to lower labor countries. America is still the biggest and most efficient manufacturer on Earth. Robots don’t earn a wage and aren’t consumer spenders.

    • 0 avatar

      Gee, I vote primarily Republican and have been reading Norman Podhoretz for 40 years and agree with much of what he writes, and I’m also Jewish so I guess that makes me a “neocon” and I’ve never heard a fellow conservative say that America doesn’t make cars the rest of the world wants. In my experience it’s the self-professed progressives who put down American cars and American companies.

      But what do I know? I don’t live in Manhattan nor do I drive an S-Class.

      If I had $10 for every time you mention your Mercedes, I might be able to put my Lotus back on the road.

      • 0 avatar

        @Ronnie

        #1 Jews typically vote Democratic

        thedailybeast.com/articles/2012/07/25/democrat-jewish-still-voting-for-obama.html

        #2 Debbie Wasserman “attack Jew” Shultz is my new favorite woman in the world. Best democrat EVER.

        #3 I’m about to start mentioning my XJ-L more and I’ll be sure to through in the fact it’s a Portfolio with the Executive Package.

        #4 If you bought a Lotus, you deserve for it to be off the road. Next time, buy a Chrysler or Ford.

  • avatar
    Trend-Shifter

    The Chevy Volt and future Cadillac ELR are a perfect example. They have key technologies and tooling duplication costs should dictate that they only be exported.

    But you know that over in China back door deals with the government would only allow this if you make commitments to have this manufactured in China at a future date.

    • 0 avatar
      daveainchina

      Ehh be like the Chinese, make an agreement and then once they want the technology, renegotiate, and keep renegotiating.. do the same thing to them that they do to us.

      An agreement with Chinese just means constant negotiation throughout the entire relationship.

  • avatar
    twotone

    I saw more Maybachs, Bentleys and Rolls Royces in two days in Hangzhou than all other places combined. Price, duties and taxes are not a problem to Chinese who can afford these cars.

  • avatar
    Juniper

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

  • avatar
    Dimwit

    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.

    • 0 avatar
      sunridge place

      This is odd behavior for a scared company keeping far away from China.

      http://media.ford.com/article_display.cfm?article_id=36370

      • 0 avatar
        Dimwit

        Interesting. What does CFMA make? Are they Fords or Chinese? I don’t think they have ever appeared on these pages, have they?

      • 0 avatar
        ranwhenparked

        @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.


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