Ford cuts production, not prices, in a slowing China

Ford would rather reduce production than cut prices when it comes to the slowing economy in China.

After years of double-digit growth increases in auto sales, China has slowed to a 7% pace, a "new normal" and David Schoch, president of Ford Asia Pacific thinks that pace may last a while.

Ford has reduced its projection for Chinese sales for the industry as a whole this year by 500,000 vehicles to an expected range of 24 million-26 million.

But the slower growth pace is having an impact on the auto industry. General Motors has cut prices across its lineup in China.

Schoch said Ford is watching price reductions in the industry closely but is not cutting its prices in an effort to retain value on a lineup that has grown to about 19 vehicles, including many utility vehicles which are in the fastest-growing segment .

"We have seen a little bit of a slowdown in showroom traffic in the last several months," Schoch said.

"If there is softness in the market, I won't let stocks build and we'll cut production. We have had some production cuts, but it's nothing material."