Ford China Han Ruiqi: Formulating Radical China Development Goals

Reporter: First of all, welcome to Mr. President to come to China, and congratulate you as Chairman and President of Ford China. From the first president, Mr. Cheng Meiyi, the second term is Ge Zhinuo. You should be the third president.

Han Ruiyi: I feel honored to be able to hold this position. China is the world’s largest auto market. It is also my pleasure to serve Chinese consumers. More than a year ago, we moved our Ford Asia Pacific Africa headquarters from Bangkok, Thailand to Shanghai, China. On November 1st last year, I also served as chairman and president of Ford China. This fully illustrates the importance of Ford Motor Company to the Chinese market.

It took five to six years to solve the North American problem

Reporter: Ford's entry into China is not short, but there is still a big gap between China's performance and other multinational car companies. What do you think this is?

Han Ruiqi: Indeed, Ford’s development in China is not commensurate with Ford’s global position. Ford has a share of 16% in the US automotive market, 9% in Europe and more than 10% in Brazil, but less than 3% in China.

This is so, and Ford has had a lot of energy in the North American market in previous years. As we all know, Ford’s business in North America has encountered great difficulties. It took five or six years to solve the North American problem. Ford sold some non-profitable brands, closed some factories, cut down half of its employees, cut costs, and increased its competitiveness.

It is precisely because of these measures that Ford has become the only company in the United States that has not gone bankrupt and has not sought government funding.

Reporter: Ford’s North American business has reached a full recovery. Can you tell us more about the situation?

Han Ruiqi: After five or six years of adjustment, Ford’s business in North America has been greatly improved, costs have been effectively controlled, and its product line has been continuously enriched. In 2010, Ford sold 1.935 million vehicles in the US market, an increase of 19% year-on-year. Become the fastest growing car manufacturer. Ford’s market share in the United States has grown for two consecutive years and is the first consecutive increase in market share since 1993. In 2010, Ford’s market share in the United States was 16.4%, which was an increase of 2.2% and 1.1%, respectively, compared to 2008 and 2009.

At present, Ford is second only to GM, ranking second in sales in the US market, and Toyota in third place. In the Canadian market, Ford Motor Sales ranks first for the first time.

Since Ford did not apply for bankruptcy protection and did not use government money to enhance consumer confidence, Ford’s business adjustment in North America has been successful and it has embarked on a virtuous cycle.

Ford's development focus is turning to China

Reporter: China has become the world's largest auto market for two consecutive years. All multinational automobile companies attach great importance to the Chinese market. How does Ford consider this in this regard?

Han Ruiqi: At present, Ford’s business in North America is on track and there is an opportunity to pay attention to the development in the Asia Pacific region, especially in the Chinese market. Ford President Alan Mulally attaches great importance to the Chinese market and encourages the development of the Chinese and Indian markets. He had served as president of Boeing before joining Ford. At that time, he was very concerned about the Chinese market.

Over the past decade, Ford has paid less attention to the Chinese market. Mulally said that the development of the Chinese market will be Ford’s most important strategy. It is necessary to bring the best products and technologies to China and change Ford’s backwardness in China as soon as possible. We are ready to flex our muscles in China. The next few years will require more radical development in China.

I think although Ford is lagging behind in the Chinese market, we still have opportunities now and in the future. Most Chinese consumers are buying cars for the first time. As long as we take the best products, Chinese consumers will welcome them. Of course, it takes time to change the backward situation.

Reporter: Compared to competitors, Ford’s models in China are still relatively small. In the coming years, what are the plans for Ford to introduce products?

Han Ruiqi: At present, Ford has only five products in China: Fox, New Fiesta, Mondeo, Transit, and McCool. Fox, New Fiesta and Quanshun have developed very well in China, and the performance of the two foreign cars has been worse. In the future, Ford will invest its global resources in the Chinese market. All models will be able to get to China as long as they are suitable for the Chinese market. Most of them are produced locally in China, and a few can be imported in the form of imports. Ford sharp is imported into China using imported methods and will soon be listed in China.

Ford’s development goals in China have been determined

Reporter: Mr. President has been in China for 13 months. What have you done during this period?

Han Ruiqi: President Mulally attaches great importance to the Chinese market. He himself invited me to serve as president of Asia Pacific Africa and president of China. After I came to China, the first thing I did was to formulate more radical China development goals. In the next 3-5 years, Ford’s development goals in China have been finalized, but today I cannot publish it. To choose the right time, we announced with our Chinese partners Changan and Jiangling. This development goal is fully agreed by the Chinese partners.

The second is to rationalize Ford’s organizational structure in China. Ford Asia Pacific and Ford China have been unified on many issues. Of the 21 individuals who reported directly to me, 17 had their work adjusted last year.

The third is to go around and attract more talent and material resources. We have recruited more talent around the world. It also sent some Chinese employees overseas to study.

Fourth, we must consider the Chinese factor from the product design stage. In the past, Ford mainly designed products for North America and Europe. All products in the future will have to consider the Chinese factor in the design stage and meet the needs of Chinese consumers.

The development of Ford in China also needs the attention and support of the media. Our aim is to learn and listen, and we hope that we will receive more support from the Chinese media in the future.