Why Ford Motor Co. Needs to Take a Page Out of General Motors' Playbook in China

One thing is certain: China will become incredibly important for global automakers to thrive in the coming decades. A combination of a booming middle class that will become wealthy enough to afford higher-priced vehicles and a rising number of vehicles per capita will provide ample growth. In fact, China's automotive market is expected to drive global vehicle sales growth in the years ahead. But if Ford Motor Company (NYSE: F) wants to gain some ground on its rival General Motors (NYSE: GM), which is killing it in the region, it'll have to steal from the latter's playbook.

Ford's China sales results have been lackluster not only for the recent month of October but year to date as well. Total Ford sales were down 5% in the region last month, and are down 5% year to date for a total of 938,570 units. Ford has especially struggled with its passenger car lineup in China lately, as demand has shifted to SUVs and crossovers. But when you compare Ford's sales to General Motors' 2.2% year-to-date gain to more than 3.1 million units, you can quickly gauge the vast disparity between the two crosstown rivals. (Though, admittedly, GM entered China well before Ford got its foot in the door.)  

While Ford's October sales in China were disappointing, the results had some bright spots. Kuga (Escape) grew sales 11% year over year. Its Everest SUV also continued to thrive, with sales increasing 38% last month. Even its Lincoln brand, which has recorded an 85% year-to-date sales explosion, had its SUV trio -- the MKC, MKX, and Navigator -- record gains of 3%, 12%, and 56%, respectively. But what does Ford need to do to really gain ground on GM in China?

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Source: Fool.com