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Oct. 24 (NBD) -- U.S. auto manufacturer Ford Motor Co (Ford) announced Wednesday that it will separate the China business from its Asian Pacific operations into a stand-alone business unit reporting directly to the global headquarter, and Chen Anning, former president of Chery Automobile Co., Ltd., will become new president and CEO of Ford China from November 1. 

With the actions, Ford is strengthening the commitment to the China market and reorganizing Ford's international markets to strengthen the performance, said Ford President and CEO Jim Hackett.  

The moves also came at a crucial time for Ford which is struggling to grow its footprint in China, the world's largest auto market.

This year, Ford saw sharp plunge in sales in the Chinese market. Data shows that sales volume for Ford in China fell around 30 percent year over year in the January-September period, and Changan Ford, as the major Chinese business of the U.S. firm, reported a sales decline of over 45 percent during the same period.

To turn around the flagging sales, Ford made the adjustment of its development strategy.

In July this year, the car maker established National Distribution Services Division (NDSD) as part of the Changan Ford joint venture. Henry Li was appointed as president of NDSD and Cao Zhenyu as executive vice president. 

NDSD is in charge of the marketing, sales and after-sales service for all Ford-branded passenger vehicles sold in China. 

On October 16, Ford unveiled a mid-sized sport utility vehicle (SUV) Territory in China. The new car was produced with local partner Jiangling Motors Corporation (JMC). This is the first JMC Ford model that is sold under NDSD. 

Following the integration of Ford's sales systems, elevating Ford China to a stand-alone business unit is the automaker's new step to boost sales in the market. 

"China is absolutely essential to Ford's profitability and growth," said Jim Farley, president of Global Markets at Ford.

The statement noted the new change will allow for greater focus on the market, faster decision making and increased Chinese leadership within the company.

As China's auto market continued to grow in recent years, annual sales of vehicles in the market is forecasted to hit 42 million units in the future.

In efforts to diversify the product line and grab more market shares, Ford launched its "China 2025 Plan" in December last year, which will bring 50 new vehicles to the market by 2025, including 8 SUVs and at least 15 all-new electrified vehicles under the Ford and Lincoln brands. 

Email: zhanglingxiao@nbd.com.cn