Ford Motor Company (F) Revamped Taurus Exclusively For China, Which Overtook US Last Year In Large Sedan Sales
Ford Motor Company (NYSE:F) has redesigned its large sedan nameplate, known as Taurus, exclusively for China, hoping to take advantage of the country’s rapidly growing auto market, especially for larger sedans. The company will team up with a local Chinese company to assemble the car in China. There is no update as to when Ford might revamp Taurus for the U.S. market, if that will happen at all.
Ford Motor Company (NYSE:F) is looking for growth outside the U.S. and the company looks convinced that China is the future for large sedan sales. The company is trying to grab a larger share of the booming Chinese automotive market at a time when some segments of the U.S. auto market are declining.
China overtakes the U.S.
In 2014, about 4 million large sedans were sold in China, compared to just about 3.9 million in the U.S. According to IHS Automotive, China will widen its large sedan sales lead over the U.S. in the next five years, leading to 5.3 million sales of large sedans in the country by 2020, compared to just about 3.7 million in the U.S. in the same period.
The shift in the U.S. market to roomier crossover SUV’s has cooled the appetite for large sedans, which explains why Ford is vying for a deeper presence in the market with a reworked Taurus.
To make up for the softness in the U.S., Ford is looking to China with the revamped Taurus. The company is looking to offer the redesigned Taurus exclusively in China, according to a press briefing on the sidelines of the Shanghai Auto Show. However, currently unknown is when Ford intends to revamp the current Taurus for U.S. consumers.
Assembling revamped Taurus in China
Ford Motor Company (NYSE:F) will team up with Chinese partner, Chongqing Changan Automobile, to assemble the redesigned Taurus locally. The car will be targeted at entrepreneurs and business people who like conservative designs and more spacious vehicles.
Slide in U.S. large sedan market
With the U.S. large sedan sales sliding to just about 3% of the car and light truck market last year, from 12% in 2000, Ford Motor Company (NYSE:F) and peers are convinced that their future of the segment is outside the U.S., and China is turning out to be a key market for the large sedans.
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