Ford Motor Co. (NYSE: F) unit, Lincoln Motor Co. announced that it has plans to produce a luxuriance SUV model in china by 2019. This decision, according to the company, is an attempt to step up competition against German and U.S rival manufacturers who have already have business operations in China.
The statement by the company explains that Lincoln vehicles, at present, are imported into China. The sales of said cars have jumped nearly 180% in 2016. "The move to local production is a key next step in Lincoln’s evolution in China and will complement continued imports from North America," the company claims.
How this announcement by ford is going to be judged by the new presidential administration remains to be seen. Earlier in January Ford announced that due to pressure from President Elect Trump, the decision to build a car plant in Mexico was abandoned. In a recent speech to congress, the President raised the issue of losing jobs to countries abroad, claiming that the U.S had lost "60,000 factories" to China.
A Ford spokesman defends the decision to manufacture in China. "Ford's philosophy around the world is to build where we sell," he said, reported by FoxBusiness.
“The Lincoln product and ownership in China is resonating with Chinese customers even beyond our expectations,” Kumar Galhotra, president of Lincoln, said in the statement. “We are now taking Lincoln to the next level by building a new SUV in China to join a dynamic lineup of imported cars and SUVs.”