Lincoln Set To Join Other Automakers By Starting Production In China In 2019

The U.S car maker Ford is set to start manufacturing the Lincoln model in China. Details of the vehicle have not been released, but they will start production of a Sports Utility Vehicle aimed at the Chinese market towards the end of 2019.

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The production of the vehicle will be made at one of the existing Ford joint venture auto manufacturers Changan Automobile Group. By building cars in China, vehicle manufacturers cab shield themselves from large taxation on imports, although China does require foreign car manufactures to partner with local firms like Changan Automobile Group which are run in part by the Chinese government.

The majority of vehicle manufacturers don’t mind these requirements as the strong demand for vehicles in China has seen vehicles such as the Lincoln increase by over 180% since 2014. Ford is hoping to expand its foothold in China, Chief Executive Officer Mark Fields says that China could be Lincoln’s largest market by the end of the decade. Lincoln is expected to have at least 80 dealers country wide by the end of 2017.

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A senior analyst with car website Autotrader.com, Michelle Krebs said “China is incredibly important to Lincoln,” “They have shown they can do fairly well there and that it holds great potential.” Lincoln is attempting to reach a niche customer base in China where the customers prefer to purchase luxury products for comfort and the personal experience rather than showing off. Lincoln is tailoring services to these niche customers.

The showrooms for Lincoln convey a relaxing and welcoming ambiance, with such features as a Tea Room. Ford has injected an approximate $2.5 billion Dollars overhauling the Lincoln Brand with models like the Lincoln Continental Sedan, and Ford’s research has shown that the Lincoln name has enough appeal to rival other automotive brands such as Audi.

According to projections by the Chinese Passenger Car Association, consumers in China are expected to buy more Sports Utility Vehicles and Minivans for the first time this year, this is due to rising income, lower oil prices and a more relaxed approach allowing more children.