Changan Ford Motor to set up electric car JV with Chongqing Changan Auto
Technology
Changan Ford Motor to set up electric car JV with Chongqing Changan Auto
BEIJING (Reuters) - Changan Ford Motor plans to set up a new-energy passenger car joint venture with state-owned Chongqing Changan Automobile (000625.SZ), according to a document published by China's market regulator on Friday.
Changan Ford Motor will own a 60% stake and Chongqing Changan Automobile will have the remaining 40% stake. Changan Ford is a 50-50 joint venture between the companies, meaning Chongqing Changan will own more than 50% of the new venture.
In the future, the joint venture plans to engage in the "supply business of mainstream brand new energy passenger vehicles and the distribution business of Ford brand models that Changan Ford has invested in," the statement said. Ford said in a later statement that the new venture also will sell existing Ford-brand gas-powered vehicles.
Ford said the venture was being formed "to better grasp the development trend of electrification and intelligence in the auto industry."
A spokesman did not immediately respond to a question about whether this new venture means Ford is minimizing its exposure in China. The company said further details would be provided later.
Ford CEO Jim Farley said last month during the company's earnings conference call that the U.S. automaker may have to use its local partners' vehicle platforms more "in certain segments," excluding pickups and large SUVs.
Changan officials could not be reached for further comment.
Sales of Ford with Changan fell 12.6% in the first half compared to the same period a year ago, according to data from the China Association of Automobile Manufacturers.
More than 40 brands have cut prices in China since January after an initial move by Tesla in a fight for market share in the world's biggest auto market, as car demand slumps, with ripples spreading through the wider industry.
