By Nora Eckert
DETROIT (Reuters) -Ford Motor’s China business, including exports from the country, made $900 million in earnings before interest and taxes last year, one of the automaker’s top executives said on Wednesday.
John Lawler, Ford’s vice chair and former chief financial officer, gave a rare glimpse into the automaker’s earnings in the country, where it has been restructuring to stem financial losses.
"When I left China in 2016, it was a digital society back then," Lawler said at an analyst conference, referring to his previous role as head of Ford China. "It’s just only advancing. They’re leaders in battery technology. They’re leaders in development. They have the lowest cost structure in the industry."
Storied carmakers like Ford and General Motors (NYSE: GM ) are facing an increasingly harsh climate in the region, as Chinese automakers including BYD (SZ: 002594 ) and EV giant Tesla (NASDAQ: TSLA ) dominate sales.
The Detroit companies have both struggled to reverse slumping sales in China, with Ford now focusing on using the country as an export hub, and GM shuttering facilities there as it absorbs $5 billion in restructuring costs.
Tariffs imposed by U.S. President Donald Trump have complicated the China business for Ford and its peers, as imports from the country face steep levies. Ford assembles its Lincoln Nautilus in China. It sold 36,544 units in the U.S. last year, a 50% increase from the prior year.