Changan Plans New Joint Venture with Chongqing Changan Automobile
Overview
Changan Ford Motor, a joint venture between Ford Motor Co. and Changan Automobile, plans to establish a new-energy passenger car joint venture with state-owned Chongqing Changan Automobile, according to a document published by China’s market regulator. The new venture, called Changan Ford Motor, will have a 60 percent stake owned by Changan Ford and a 40 percent stake owned by Chongqing Changan Automobile.
Joint Venture Details
The joint venture aims to engage in the supply and distribution of mainstream brand new energy passenger vehicles as well as Ford brand models that Changan Ford has invested in. Additionally, the new venture will also sell existing Ford-brand gas-powered vehicles.
Reason for the Joint Venture
Ford stated that the joint venture is being formed to stay ahead of the development trend of electrification and intelligence in the auto industry.
Implications for Ford in China
The formation of this joint venture aligns with Ford CEO Jim Farley’s strategy of leveraging the strength of the company’s partners in China. Ford may utilize its local partners’ vehicle platforms more in certain segments, excluding pickups and large SUVs. This move does not indicate a reduction of Ford’s presence in China.
Sales Performance and Industry Trends
In the first half of the year, sales of Ford vehicles with Changan fell by 12.6 percent compared to the same period last year, according to data from the China Association of Automobile Manufacturers. The wider industry has seen price cuts from more than 40 brands since January, following Tesla’s initial move, as car demand slumps in the world’s largest auto market.
This Article Changan Ford Plans New-Energy Passenger Car Joint Venture with Chongqing Changan Automobile was first Published on World Weekly News
Source: Changan Ford Plans New-Energy Passenger Car Joint Venture with Chongqing Changan Automobile
