Wu Shengbo is undoubtedly the gold medal winner of Ford, which earned 4.
4 billion yuan in China in 2024.
Recently, the vice president of Ford Motor Company and the president and CEO of Ford China have been re-appointed.
On February 7th, Ford Motor Company announced that Wu Shengbo would be in charge of Ford Motor International Markets Group (IMG) business in addition to his existing responsibilities.
Jeff Marentic, head of Ford Motor International Marketing Group, will report to Wu Shengbo.
From the head of China to the head of the international market, Wu Shengbo relies on his excellent profitability.
Under his leadership, Ford China not only reversed the decline and rebounded sales, but also made a profit in the second half of 2023, with a net profit of $600 million (about 4.
4 billion yuan) in 2024.
This achievement is particularly dazzling in an environment in which the Chinese business of foreign brands is generally facing a contraction in profits.
After this promotion, Wu Shengbo will take charge of Ford’s operations in overseas markets such as ASEAN, South Africa, Australia and the Middle East.
Wu Shengbo: fire captain, under the leadership of Wu Shengbo, Ford China has been profitable for six consecutive quarters and made its first full-year profit in 2024 for the first time in seven years.
It was such an eye-catching report card that Wu Shengbo won the opportunity for promotion.
Wu Shengbo, photo: Ford China, Wu Shengbo joined Ford China in October 2022, initially serving as General Manager and Chief operating Officer, and promoted to President and CEO in March 2023.
Prior to joining Ford, he was president of Whirlpool Asia pacific and a member of the global executive committee, as well as senior management positions at multinational companies such as Osram, Honeywell and general electric Rich experience in local operation and global market management became the key for him to lead Ford to break the game.
It is reported that in interviews with Bill Ford (fourth-generation Ford heir and current chairman of Ford) and Jim CEO, Wu Shengbo asked bluntly, “does Ford plan to stay in China or leave China?” If you choose to leave, there is no need to call me.
” He took over Ford China in 2022 after receiving a clear commitment that “Ford will not withdraw from China”.
Photo: Ford China, it is worth noting that Wu Shengbo has no previous experience in the automotive industry.
Ford was in deep trouble in china at the time: sales in 2022 were only 496000, down 33.
5% from a year earlier, less than half of what it was in 2016, with a loss of $572 million that year.
As a “fire captain”, he is good at changing and leading enterprises to break through.
During his time at Whirlpool, Wu Shengbo reshaped the product matrix and organizational structure through drastic reforms, led enterprises out of the quagmire of price war, turned to the high-end market, and finally helped Whirlpool reverse the trend in the Chinese market.
From Whirlpool to Ford China, Wu Shengbo has shown excellent corporate restructuring and reform capabilities, which may be the reason why Ford has once again entrusted it with an important task.
After sales picked up and exports became a new growth curve, Wu Shengbo quickly lit up the “three fires” after he took the helm of Ford China.
He first set out to reshape the brand camp, positioning Ford as a representative of hardliners and performance, while Lincoln focused on the luxury market.
In terms of product strategy, he decisively turned to “emphasizing profits over sales”, boldly cut down small cars with low profits, concentrated resources on developing large cars with high gross margins, and at the same time integrated and optimized factories with insufficient capacity utilization, that is, “shut down and merge.
” On the new energy track, Ford China actively embraces the localization strategy, deeply links up China’s industrial chain, accelerates the development of new energy models adapted to the local market, and promotes electrification transformation.
Among them, the joint venture brand Changan Ford and Changan Automobile established Changan Ford New Energy vehicle Technology Co., Ltd., and the latter owns 70% of the shares and holds the dominant power.
This is a bold attempt of Ford’s electrification transformation in China.
At the same time, Ford China has also opened up a new growth curve-vigorously expanding its vehicle export business and bringing Chinese-made models to the global market.
This series of reform measures soon bear fruit.
Ford China made a turnaround in the third quarter of 2023, ending a cumulative loss of $2.
5 billion in the previous five years.
In 2023, although sales remained flat at 470000 vehicles compared with the previous year, Ford’s gross profit margin in China rose significantly, driven by a sharp rebound in profits, thanks to the optimization of product mix and the focus on high-margin models.
By 2024, Ford China has made a considerable profit of about US $600 million, which industry insiders believe is due to its successful partnership and deeply localized operations.
Under the background that foreign car companies are generally facing operating pressure, Ford’s eye-catching performance in China is particularly eye-catching.
As Jim Farley, Ford’s global CEO, said, “I am proud of Ford’s profitability in China, because it is not easy in the current environment.
” Indeed, looking at the Chinese market, Beijing Hyundai lost about $360 million in the first three quarters of 2024, GM’s China business recorded a special loss of more than $5 billion, and even Guangzhou Auto Honda suffered a loss in the first half of last year.
In contrast to the sales of Changan Ford in 2024, the two Ford joint ventures in China are showing recovery.
Changan Ford sold 247000 vehicles for the whole year, an increase of 5.
97% over the same period last year, and its first-half net profit exceeded 1.
8 billion yuan.
Jiangling Ford’s all-flush vans, roadshaker SUV and other light trucks have also maintained a steady performance in the market.
It is particularly worth mentioning that Ford China has made a breakthrough in its export business.
Official figures show that its exports exceeded the 100000 mark for the first time in 2023, an all-time high.
In the first half of 2024, Ford’s exports to China increased by 45% compared with the same period last year, reaching 75000 vehicles, and the products are exported to the Middle East, Southeast Asia and the Americas.
This eye-catching performance in the overseas market has become an important weight for Wu Shengbo’s promotion.
Jim Farley commented, “Wu Shengbo’s excellent leadership skills will be a valuable asset for our continued growth in China and the global market.
” Photo: Ford China, combined with various sources, Ford China has become one of Ford’s important export bases in the world.
Jim Farley further pointed out that “to achieve greater success in international markets such as ASEAN, South Africa, Australia and the Middle East, we must give full play to Ford’s fast-growing export business in China and further enhance the international competitiveness of the brand.
” Ford China by focusing on high pricesValue-value models rather than determined sales volume, as well as the successful experience of opening up export markets to achieve positive profits, have undoubtedly provided a transformation model worth learning from for other foreign-invested car companies in China.
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