American legacy automaker Ford announced that it has formally reorganized its Mustang Mach-E operations in the world’s largest automotive market – China. The move marks a significant setback in the company’s initial goals for the business, as noted by CnEVPost.
For context, Ford was initially optimistic about its Mustang Mach-E business in China, leading to the founding of the Ford Electric Mach Technologies (FMeT) last September 2022. It was the country’s first separate business unit by a foreign automaker concentrating on smart electric vehicle R&D and operation.
Changan Ford takes full control of Mustang Mach-E’s operation
Changan Ford has formally obtained full ownership of the Mustang Mach-E business in the Chinese automotive market, as disclosed by the Ford joint venture. It noted that the move is primarily due to the automaker’s strategic development plans and Chinese operation realignment.
In that sense, the Changan Ford overthrew Ford Electric Mach Technologies (FMeT) as the operating business entity for the Mustang Mach-E, involving its sales, after-sales, use operation, maintenance, and service.
Now, the Mustang Mach-E operation in China will leverage Changan Ford’s established distribution network. It will enable the JV to rapidly expand EV’s sales and service platforms to further improve customer service.
It is also worth noting that the initial batch of Mustang Mach-E certified dealerships have almost 300 locations, indicating a nearly threefold increase from the prior number. These dealerships cater to 70 significant new energy vehicle (NEV) cities in China.
With this major business reorganization, Ford can now focus on boosting its electrification efforts in the Chinese market. Meanwhile, Changan Ford will work on advancing the business’ EV and digital tech.
Planned changes
Changan Ford aims to improve the Mustang Mach-E’s current cockpit chip by replacing it with the Qualcomm Snapdragon 8155 without asking for an upgrade fee for all Chinese owners.
Notably, Ford launched the model in China in April 2021, with initial deliveries starting on December 26 of the same year. It originally featured the older Qualcomm Snapdragon 820A chip.
The upgrade will enable the EV’s CPU to raise its computing power threefold. It will also boost its GPU computing power by fivefold.
See Also:
- Ford steps up EV efforts with plans to electrify the Fiesta Model and modifies Mustang Mach-E
- 2023 Ford Mustang Mach-E – Review, Pricing and Specifications
- Ford announces plans to ramp up Mustang Mach-E production in 2023, cuts prices by $600 to $5,900
- FBI seen driving a Badass Ford Mustang Mach-E Electric Car
- The new $7,500 tax credit excludes Tesla Model Y & Mustang Mach-E
The business reorganization apparently involves over 2,000 workers, which is set to be finalized in July. A source familiar with the matter asserted that the EV’s sales are very low, making it hard for the independent business unit to manage losses for an extended period.
Hopefully, Changan Ford’s takeover of the business will actually boost Mustang Mach-E’s sales in China.
