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Ford Executive: See China 09 Sales Volume Up Close To 50%



GUANGZHOU -(Dow Jones)- Passenger car sales at Ford Motor Co.'s (F) China joint venture will likely rise by close to 50% this year, partly due to government incentives for purchases of small vehicles, Nigel Harris, general manager of the joint venture, said Monday.

Passenger car sales by the joint venture, Changan Ford Mazda Automobile Co., hit 188,244 units in the January-October period, up 40% from a year earlier.

Sales of the Ford Fiesta and Ford Focus models have driven the joint venture's strong performance, Harris said at the Guangzhou auto show Monday. The Fiesta qualifies for a purchase tax credit for cars with engines smaller than 1.6 liters. The Focus does not.

Asked if he expects the Chinese government to extend the tax incentives for small vehicles next year, Harris said: "I haven't heard anything to the contrary. The government has been very clear in saying the automotive sector is very important to the Chinese economy."

Harris said he expects China's overall auto market to grow 10% next year in terms of sales, and Ford to grow at a faster pace than the market.

Ford currently holds around 3% of the passenger vehicle market in China, but " that's not the ultimate market share that we want," Harris said. He declined to give a target market share.

-By Patricia Jiayi Ho, Dow Jones Newswires; (8610) 8400-7702; patricia.ho@ dowjones.com


  (END) Dow Jones Newswires
  11-23-090414ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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