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Ford moves towards more connectivity and freedom

By Anna Lu | April 29, 2016, Friday | Online Edition

Ford, having changed the way people move with its invention of assembly lines for affordable cars, is now leading a smarter way to move.

At the current Beijing Auto Show, Ford previews a future of mobility combined with connectivity, data analysis, and autonomous driving. It sees the company’s self-reinvention from a pure manufacturer into a transport service provider, even if it means encouraging shuttle car plus metro, ride-sharing or even car co-ownership that may leave a dent on car sales.

“Today, the world’s automobile industry is worth $US2.2 to 2.3 trillion, and we hold 6 percent market share. But in transport services, a US$5 trillion market, Ford and other global car manufacturers get basically zero,” said John Lawler, chairman and CEO of Ford Motor China.

The company has spotted not only an untapped business opportunity, but also answered to some social mega-trends that are taking the shine off private car ownership, especially in China, the world’s largest car market.

While more than half of Chinese car owners consider their car a life necessity, 60 percent no longer see it as a status symbol despite the country’s deeply entrenched face consumption culture, and 47 percent feel them less useful with the worsening of traffic conditions, according to recent survey by consulting firm Mckinsey&Co.

The firm also finds that online-to-offline pattern of mobility integration, such as app-enabled car-for-hire and ride-sharing services, have reduced private car usage by 20 percent in the country, with their ramification throughout 2030 to cut new car sales by 4 million units.

And the advancement of autonomous driving technology, which enhances a disengaging experience of using cars as mobility tools, also raises concerns about car brands being increasingly anonymous.

“It is like we don’t really care about who make the bus or high-speed train we take,” said

Rupert Hoogewerf, chief researcher of Hurun Research Institute.

Lawler said in the future, providing cars and their related services will both be very important for companies like Ford. But car brands will not become irrelevant. They just need to find a different way to engage users.

In the second half of this year, the company will launch Ford Pass in China as an eco-system of smart services for travel planning to glue users with a sense of brand affinity and also opportunities to earn rewards from its business partners. The company has been promoting ride-sharing with Chinese company Dida since last October.

Still, promoting and selling cars remains important to the company within the transition.

At the Beijing Auto Show, it is set to further expand its high-performance car line-up in China with the introduction of its F-150 Raptor pick-up, GT sports car, and also hot hatchback Focus RS.

For its Lincoln brand, a relatively latecomer in China’s premium car market, it brought the Continental full-size sedan, and new MKZ medium-size sedan to make good on its promise of taking 5 car models to China by 2016. Last year, the first full year for Lincoln’s sales in China, the firm saw its deliveries near 12,000 units.

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