Ford Motor Company (NYSE:F) has released a business update, about its business activities in China. The company announced that it has continued to build momentum in the country, with the help of its venture partners. Ford recorded a surge of 14% in vehicle sales, on a year-over-year basis, in the country. Peter Fleet, the VP of Marketing, Sales and Services in Asia Pacific, for F, stated that they were on track to make FY2016 the best ever for sales in China.
On the other hand, the company is facing troubles at home, as Ford sales declined by 12% in the US, for the same period. The company noted that transit was one of its few vehicles, which was successful in recording a surge in sales. Mark LaNeve, the US counterpart for Mr. Fleet, that customer demands for Ford pickups has been on the rise, particularly the company’s Super Duty trucks. He pointed out that this has helped drive up transaction prices for Ford, by almost $1,600, as compared to the industry average of $600.
Despite the decline in sales for October, the company decided not to update its full year production guidance, of 700,000 vehicles, in the US. However, Ford claimed that it was working towards matching production with customer demand and was well positioned to for year-end events, such as Black Friday.
In addition to this, Ford has signed a tentative agreement with Canadian Union of Auto Workers, Unifor. The company stated that the agreement calls for a new 4-year contract, so as to avert a strike, which had been threatening to disrupt production in the region. It should be noted here that the operations in Canada account for 10% of the North American output of Ford. Moreover, the agreement also calls for F to introduce a new engine at one of the three factories in Canada, which would require an investment of $522 million from the company.
Ford Motor Company (NYSE:F) completed the November 8 trading session with a decline of 0.86%, on a trade volume of 28.5 million, to close at $11.48 per share.