By on March 13, 2017

2016 Lincoln MKX, Image: Ford

Not content with just offering Chinese buyers the Lincoln Continental, Ford Motor Company plans to take a page from General Motors’ playbook and offer the expansive market its own home-built SUV.

The automaker intends to partner with China’s Changan Automobile Group to build Lincolns in the city of Chongqing, starting in late 2019, Ford claims. The two companies reportedly began talks early last year.

The Blue Oval confirmed its plans in an email to Bloomberg. By setting up shop in China, Ford would side-step that country’s steep import tariffs. Unlike in other markets, foreign automakers looking to produce vehicles in the country must first partner with a Chinese company.

State-owned Changan is no stranger to such partnerships, as it already has agreements in place with PSA Group, Suzuki, Mazda, and the notorious Jiangling Motors, maker of blatant ripoff Landwind models.

While Ford has confirmed the new joint venture, it isn’t providing any hints as to the future plant’s offerings. Assuming sufficient demand, it would make sense to eventually produce other tariff-dodging models there, though Ford claims it will continue to import existing models, including the flagship Continental. As for the all-new SUV, its identity also remains a mystery.

The resurgent Lincoln brand landed in China in 2014 in an attempt by Ford to wrestle entry-level luxury sales away from rival GM. Last year saw 32,558 Lincoln sales in that country, a threefold increase from 2015. Apparently, customers were most enamored with the brand’s utility vehicles, which makes this announcement even less of a surprise.

According to the China Association of Automobile Manufacturers, utility vehicles are as much in demand as they are in the U.S., with sales up 45 percent last year.

[Image: Ford Motor Company]

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48 Comments on “‘All-new’ Lincoln SUV to be Built in China, Ford Claims...”


  • avatar
    Asdf

    Just don’t export it out of China, say, to the United States.

    And be prepared to be ripped off by the Chinese government. All your intellectual property are belong to us.

    • 0 avatar
      Big Al from Oz

      Asdf,
      The US has a similar model in place with a massive section of the US vehicle market.

      Believe it or not imported pickups face a 25% import tax forcing all pickups to be manufactured in a NAFTA nation.

      Even GM and FCA were totally reliant on the US government tax money. What of the technology for your vehicles from overseas? Vehiclee tech in the US is largely imported, similar to Chinese.

      Being one eyed and treating your views as facts, while discounting the complete story makes for poor judgment.

      • 0 avatar
        Asdf

        Seems like you’re responding to another post than the one I wrote.

        • 0 avatar
          Big Al from Oz

          No Asdf. You talk of intellectual property. What intellectual property has the Chinese taken from Ford?

          As I stated, US pickups are also reliant on technology developed in other countries. Not one manufacturer is totally reliant on in-country tech. The use of external technology is not theft.

          Do you know what intellectual property is?

          • 0 avatar
            Asdf

            In Ford’s case, it’s actually *sold* some of its IP to a Chinese firm (Geely) back when it sold Volvo. But my point was that Ford shouldn’t feel safe about its IP when it enters China (nor should any other automaker).

          • 0 avatar
            Kyree S. Williams

            Ford probably licensed its IP, rather than selling it.

      • 0 avatar
        Superdessucke

        What would the tariff be if Ford built the Lincolns here and imported them to China?

        • 0 avatar
          Big Al from Oz

          I would assume 25% like the Raptors face in China.

          • 0 avatar
            Superdessucke

            Looks like it’s a bit more than that. And unlike U.S. it applies to all vehicles, not just a certain class….

            https://www.theguardian.com/business/2011/dec/15/china-taxes-us-car-imports

      • 0 avatar
        Big Al From 'Murica

        Al that model is not even on the same planet as that of the US. This would be akin to requiring Toyota to partner with GM to build the Camry.

    • 0 avatar
      Guitar man

      The 25% tariff only applies to pick ups, commercial vehicles, not SUVs.

      This model doesn’t attract an import tariff and you bet they’ll import it, either fully or as a PKD kit.

  • avatar
    pmirp1

    What is funny about China is they want you to first partner with a local company manufacturing together before allowing you to sell in China. It is a slap in the face to US, not only are we dumb enough to give them manufacturing employments for iPhones and so much more, but few other things we can sell to them like cars they insist on partnering with us (or other world manufacturers) and make it there.

    Imagine if US insists Mercedes should partner with Fiat-Chrysler before being allowed to sell here. The outrage that would ensure have no end. Like president says, they look at us and treat us like dummies when it comes to trade.

    • 0 avatar
      threeer

      If you don’t “partner,” you face stiff tariffs. If you do “partner” you are required to give up all technical data/know-how. And if none of those sound appealing to you, just wait around and watch a company blatantly rip off your design, regardless of if you were successful in trademarking it.

      • 0 avatar
        Asdf

        And yet for some reason, people think that *not* being present in China on those terms is insanity. It’s like trying to reason with a drug addict, with the drug in this case being Chinese profits – *short term* profits. The piper will have to be paid eventually.

        • 0 avatar
          derekson

          It’s the mentality of growth uber alles that permeates modern capitalism.

          Profitable business model? Who cares??? Grow or die, regardless of profit or margin or sustainability!!!

        • 0 avatar
          Big Al from Oz

          Asdf,
          What proof do you have Chinese profits are short term?

          Judging by the expansion of the Chinese economy, increase in the Chinese middle class and market size there is more money to be made in China compared to any established vehicle market.

          • 0 avatar
            Asdf

            The Chinese profits will dry up when the Chinese government takes control of the joint ventures and kicks out the Western automakers.

          • 0 avatar
            Big Al from Oz

            Asdf,
            Again, what proof do you have.

            There is plenty of evidence China reducing state owned enterprises, contrary to your paradigm.

            As I mentioned gather as much information as you can so you don’t spruik subjective and innacurrate information.

            Be objective.

          • 0 avatar
            Asdf

            I’m simply seeing the writing on the wall.

    • 0 avatar
      28-Cars-Later

      The US should do just as such, you want to sell here you must build here and partner with an existing US firm. I mean, notgonnahappen and all but Zhōngguóren hen cōngmíng.

      • 0 avatar
        pmirp1

        28-cars-Later, I completely agree. But not only do we not put tariff on Chinese and Mexican products, we add insult to injury, allowing Honda, Toyota, now even Audi to build in Mexico for US market, in addition to our own American companies. It is shameful what we do to US manufacturing and our own people. But then there are some parrots who say its all automation’s fault. All the time ignoring all those manufacturing jobs in Mexico that are part of new factories GM and Ford and Vw and Audi and Chrysler and Toyota and Nissan build, and all the ten of thousands of workers they need at those state of art factories.

        I remember Ross Perot used to tell Bill Clinton about all those jobs being sucked into Mexico. Yet NAFTA was approved. It is as though we can’t stand up for ourselves. One day, when there are no jobs left in America, our call centers outsourced to India and south America and Philippines, cheap manufacturing in Mexico and China, all IT and service jobs outsourced to India, we wake up and realize we can’t afford all those products that Americans and other countries manufacture.

        That reckoning day is not too far off, and only people blind to what is happening in all parts of our industry are against protectionism vs. cheap labor intensive countries.

        • 0 avatar
          Big Al from Oz

          pmirp 1,
          So, how much are you prepared to pay in taxes to increase US auto manufacturing and increase in vehicle prices?

          The US is an expensive country for manufacturing.

          This will occur with your views.

          • 0 avatar
            pmirp1

            Big Al from Oz, As a society we have become used to having our cake and eat it too.

            There is a price for possibly making items locally. You have tiers of automobiles, catered to different budgets if built locally. Does every automobile have to have anti lock brakes? Does every automobile have to have built-in wifi? Does every automobile have to have a camera so you don’t turn your neck? Does every automobile have to have traction control? Does every automobile have to have independent suspension? The list goes on and on. Is everyone entitled to a CUV or medium sized vehicle? What happened to Chevettes, Dodge Omni Horizons? Why is Fiesta not selling? Why is Toyota small cars not selling?

            I can play this game at home too. Do we need kitchens with granite counter-tops? How did our parents live with laminate? Do every light switch has to have a dimmer? Do all rooms have to be prewired for security? Do we have to have brick or Hardiplank? Or can we get along with cheaper?

            You should afford what you can. Without trading your future generations ability to afford anything because there are no jobs left, by building locally.

            A culture of saving will be cultivated if you have to plan to buy a high quality hammer at Home Dept for $20, vs. a cheap Chinese hammer for $5 that you have to replace in couple years.

            It is all about expectations and instant gratification, vs. future.

          • 0 avatar
            Big Al from Oz

            pmrip 1,
            Remember this.

            Without global trade, which has been occurring since Neolithic times the USA would be a nothing country.

            What placed the US where it is now? Trade.

            The nation with the most trade and control of trade will be the most affluent and successful country.

            China is competing. When competition increases you don’t drop your bat and ball like you are suggesting.

            When you do you forfeit and lose.

            Compete, and stop whinning. You sound like a loser.

          • 0 avatar
            Big Al From 'Murica

            What placed the US where it is now? Trade.

            Well, Trade, Not being devastated by WWII, and being the first to develop the Atomic Bomb.

    • 0 avatar
      Big Al from Oz

      Then don’t deal with them. The reason for the dealings is the foreign manufacturers in China see a pot of gold at the end of the rainbow.

      I don’t agree with the Chinese way of doing business. I do believe China is approaching a fork in the road in how they do business.

      There is a move by the Chinese to dismantle state owned enterprises. This will not occur overnight.

      As affluence increases in China you will see a move for a more liberal economy and country. The only other option will be forced change by the Chinese people.

      China is a socialist country full of capitalists and Japan is a free country full of socialists. So I do have faith China will change for the better, if they don’t there will be carnage.

      • 0 avatar
        pmirp1

        Big Al from Oz, what is that pot of gold you are referring to?

        Is it short term higher margins because products and services are made overseas while our ability to purchase in America has not completely gone to nothing?

        You know where that pot of gold goes to? It goes to executives in terms of higher salaries, bonuses, and stocks/stock options. It goes to stock market in terms of dividends to stock holder of record. It doesn’t proportionally go into R&D, and it sure doesn’t go into purchasing power of middle class. It is why income equality is the highest it has been in last 50 years ~.

        What you call pot of gold, is a short term mirage. I wonder who Apple, Ford, GM, … will sell to in long term, if middle class can’t afford those same goods those companies build?

        It is why now we are looking at home ownership rates going down, and apartment rental being in highest demand across all US cities. It is why car pooling, and services like Uber have come to be. This is just the beginning of tsunami that is our next generations not being able to afford products that our companies manufacture in cheap labor countries. All for that “short term” pot of gold.

      • 0 avatar
        pmirp1

        Big Al from Oz, competition is fair across countries with equal standards of living.

        It is why you don’t see people complain about trade with Canada. But they do about China and Mexico.

        It is a fool’s game to trade on equal footing with countries where they make in one week, what we make in two hours (America vs. Mexico).

        • 0 avatar
          Big Al from Oz

          Fair?

          So, you believe the US should be spotted points to compete? That’s really fair.

          The US was in a similar position 100 years ago or so as China is now. Except it was European countries complaining.

          The US is not as fair as you assume. Its in it for itself. The US has made global trade and now as all want to be like the US many are worried in the US.

          Maybe you should be celebrating the success the US has had on the world and follow the risk taking your forefathers took immigrating and making the US a success.

          The US now more than ever needs external trade for economic success and political stability of its trading partners.

          The US is the largest economy ….. but >80% of the world economy is not the US.

          The US to retain an upper hand in trade it must find ways to deal with an ever increasing competitive environment.

          Show me any time in history where protectionism works.

          • 0 avatar
            pmirp1

            Big Al from Oz, if you have to go back 100 years and talk about a world then to compare to situation now, our discussion is fruitless. I wish you luck in your future discussions.

          • 0 avatar
            Big Al from Oz

            pmirp1,
            I’m citing an example.

            If we don’t look back and comprehend the consequences of our actions we will fail in the future.

            Protectionism does not work. It will only stiffle living standards. This has been proven.

          • 0 avatar
            Big Al From 'Murica

            Al, with regard to fairness nobody said “Hey USA, you guys are behind the curve so we are going to allow you to pollute way more than everyone else.” Granted keeping the planet clean was nobody’s priority back then, but nobody got a free advantage either.

            Also with respect to trade, that often goes hand in hand with military interventionism to protect trade in places like the middle east. The US one of the few countries that can pull of both pieces of that puzzle.

    • 0 avatar
      Whatnext

      This is one point where I fully agree with the new US administration: China has had a free ride for much too long and it is time to slap some significant tarriffs on their products.

      • 0 avatar
        Big Al from Oz

        So, when the US exports 5 times more in value to Australia, is the US taking us for a ride?

        Is the US taking Canada for a ride because Canada imports more in value from the US?

        What a pathetic and selfish outlook.

  • avatar
    TMA1

    Amusing that Jiangling Motors is the only one, in an article about Ford, called out for making a Land Rover copy. Or am I the only one reaching for this low-hanging fruit?

    • 0 avatar
      Big Al from Oz

      I’d would like more information on Jaingling.

      Jaingling is also working with Ford manufacturing a Chinese variant of the new Ranger, a lighter Ranger.

      These are imported into Australia.

      I would like to see the connection with the different Chinese Ranger and the up and coming US Ranger.

  • avatar

    When manufacturing jobs are outsourced white collar engineering and design jobs soon follow. How do you think Daewoo got the contract to create the Bolt.

    • 0 avatar
      Big Al from Oz

      Because the GM Korean arm had the expertise. Who makes the batteries, LG?

    • 0 avatar
      TMA1

      I would guess Daewoo “got the contract” when GM noticed that Daewoo changed its name to GM Korea 6 years ago. Which led GM to realize that they’ve actually owned the company since 2001. Then they noticed that the small cars they got from GM Korea were far better than anything they made during the era of the Ion/Cobalt/G5, etc.

    • 0 avatar
      mcs

      @akear: How do you think Daewoo got the contract to create the Bolt.

      http://gazettereview.com/2016/06/top-10-most-intelligent-countries-in-the-world/

      http://www.businessinsider.com/the-10-smartest-countries-based-on-math-and-science-2015-5

  • avatar

    That explains one of the reasons why Germany, Japan, and Korea have a better auto industry than the US. GM really deserves to lose their market share.

    If you can’t make better vehicles than Daewoo then GM deserves to go under.

  • avatar
    Charliej

    With Opel gone, Daewoo will be designing all of GM’s small cars and small SUV’s. What is not done by Daewoo will be done in China. How long until GM becomes a Chinese company?

  • avatar
    el scotto

    From the top: The US has the largest economy and highest standard of living in the world. We (the US) have the world’s largest vehicle market in the world. Car manufacturers are global manufacturers, most if not all of them have some sort of representation in Detroit. Yes, Detroit with all it’s faults, blemishes and bruises; Detroit still rocks the automotive world. Huge amounts of cash flow through Detroit, something the clueless don’t understand. If you”re not in Detroit, you’re not on the inside/fast track vehicle-wise. Fords in China? A GM “Center of Excellence” in Australasia? They’re working on orders from Detroit! I’m expecting the Bogan Brain Trust (TM) to be gnashing their teeth, wringing their hands, and quite possibly foaming at the mouth over this. Oh, and I expect to be called a derogatory name in one (or many more) of their replies.

    • 0 avatar
      N8iveVA

      “We (the US) have the world’s largest vehicle market in the world.”

      That hasn’t been true for years if I’m not mistaken.

    • 0 avatar
      Big Al from Oz

      el scotto,
      I think you’ll find the US has the 4th highest behind; 1. Norway. 2. Australia. 3. Netherlands.

      If disparity is considered (you know all those on minimum wages etc) the US sits at with the 28th highest standard of living.

      So, this tells me there are plenty of have nots in the US and a large gap to the haves.

      Australia drops to 4th when disparity is included.

      China seems to be an ever expanding market for vehicles and has surpassed the US a while ago.

      Stop living in the 60s.

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