Why Ford Motor Company (F) and General Motors Company (GM) Are Rushing SUVs to China

Ford Motor Company (NYSE:F) is a few steps behind, but already thinking along the same lines. It’s in the process of rolling out its Lincoln brand in China, hoping that its curvaceous new Lincoln sedans prove as popular with Chinese luxury-car buyers as its Ford Motor Company (NYSE:F)brand models have proven with mainstream consumers.

The upshot: A big market is getting richer, and automakers will profit
“Our focus is on luxury vehicles and SUVs going forward,” General Motors Company (NYSE:GM) China chief Bob Socia told reporters this past weekend, talking about General Motors Company (NYSE:GM)’s plans for growth in China.

For General Motors Company (NYSE:GM), which has led VW in China sales but trailed in profits, improving margins in China and elsewhere is a major priority. That makes Socia’s words no surprise: SUVs and luxury cars are among the most profitable products in the business, and with SUVs in particular, it’s a market where GM is well-equipped to compete.

Likewise, Ford Motor Company (NYSE:F)’s high-tech SUVs should play well with Chinese customers. But the company’s Lincoln brand is far behind even General Motors Company (NYSE:GM)’s Cadillac in the global luxury-car race, and improvement there will be a challenge. Still, the Blue Oval has staked out a premium position among mainstream brands, and stands to do well as China’s incomes continue to rise.

The article Why Ford and GM Are Rushing SUVs to 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 BMW, Ford, and General Motors. The Motley Fool owns shares of Ford.

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