Ford allegedly considering building Lincolns in China
Sources told Bloomberg that Lincoln, Ford Motor Company's luxury arm, is looking to establish manufacturing roots in China with the help of Changan Automobile Group. For those unfamiliar with the process, an automaker can manufacture its vehicles inside China, so long as they're in a 50-50 joint venture with a domestic Chinese partner.
The original goal, per the New York Times, was to help Chinese brands understand the industry so that they could one day produce vehicle exports of their own. Automakers can sell imported vehicles in China, but they face a 25 percent import tax for doing so. Bloomberg points out that, as it stands, the price of a Chinese Lincoln Navigator is more than double what its US MSRP is.
Thus, the decision to partner up and manufacture in China seems like a no-brainer. Ford doesn't need to move its whole operation over there, nor would it, because exporting to the US would drive up costs in a different market. It's all about leveraging what you can, where you can, to keep costs low and bring as many heads through the door as possible.
Lincoln did not immediately return a request for comment, but it gave Bloomberg a deliciously vague runaround about how it has nothing to announce. Ford already produces cars in China with Changan's help, so it wouldn't be beyond the realm of rational thought to assume that Lincoln would join in on the fun.
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