Ford Motor Company (NYSE: F) announced on Tuesday that as part of its global expansion, it will create a stand-alone business. The Asia-Pacific segment will hire a new President and Chief Executive Officer for the new venture, Ford China.
China is one of the largest vehicle markets, which is why Ford believes creating an Asia-Pacific branch will lead to growth opportunities. The Company is looking to accelerate its growth and return to profitability.
Ford China will name Anning Chen as the President and Chief Executive. The segment will report to Ford’s global headquarters. Peter Fleet, President of Ford Asia Pacific will aid Chen in transitioning into his new position. Fleet will also oversee the International Markets business unit.
“China is absolutely essential to Ford’s profitability and growth,” said President of Global Markets Jim Farley. “As the largest vehicle market in the world, China commands its own leadership and focus. As we transition China to a stand-alone business unit, led by an experienced and talented Chinese business leader, we are able to become more fit as a business, increase our decision-making speed and be closer to our customers.”
Along with the new stand-alone business, Ford will also look to capitalize on other emerging markets, reduce bureaucracy and have the right cost structure and improve operational fitness.
“Success in China is critical as we reposition our global business for long-term success,” said Ford President and Chief Executive Officer Jim Hackett. “With today’s actions, we are strengthening our commitment to the China market and reorganizing our international markets to strengthen their performance.”
In addition, Ford also announced plans to increase local production for its Ford and Lincoln, create detailed investment in China-led engineering and R&D and a incorporate a new single sale and service channel.
Ford has also partnered with Zotye to produce electric vehicles and with Baidu and Alibaba to explore areas of AI, connectivity and digital marketing.