Ford Motor Company (F): Can It Beat General Motors Company (GM) in China?

Success has already begun to come Ford’s way
The first of those 15 was the new Focus, introduced in China last spring. It has been followed by the Escape SUV, which is called the Kuga in China, and will soon be joined by more SUVs – and by Ford’s hot new Fusion, which will be sold under the Mondeo name.

Many more models are on the way – and many of those will be built in China. That allows Ford to avoid China’s steep tax on imported vehicles, though at a cost – profits will have to be split with Ford’s Chinese joint-venture partners, as required by Chinese law. Still, the increase in sales should make that trade-off more than worthwhile.

Ford Motor Company (NYSE:F) says that China is on the verge of becoming its second-largest market after the U.S., eclipsing the company’s longtime stronghold in Europe. By 2020, it’s possible that Ford’s sales in China could be even greater than its sales here at home, the company says.

That kind of growth will drive a big jump in profits for Ford. And that will be a great thing for Ford’s stock, whether the company is beating GM in China or not.

The article Can Ford Beat GM in China? originally appeared on Fool.com.

Motley Fool contributor John Rosevear owns shares of Ford and General Motors. Follow him on Twitter at @jrosevear.The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.

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