Chongqing Changan Automobile is in talks with Ford Motor to expand their partnership beyond China, a senior Chinese executive has said.
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Chongqing Changan, which makes Focus and Fiesta among other models with Ford and Mazda Motor, is joining SAIC Motor, seeking to expand the tie with its foreign joint venture partner beyond the current terms and conditions.
SAIC and its long-time partner General Motors has set up a joint venture in India making SAIC’s Wuling brand mini trucks and vans, a move that could expand GM’s market share in India and give the top Chinese automaker access to a fast growing neighbouring market.
When asked whether Changan – a front runner in China’s mini vehicle segment – is planning to team up with Ford to tap overseas markets, Zhang Baolin, president of Chongqing Changan told Reuters: “We are having discussions with each other on that. We are doing some studies currently.”
Joe Hinrichs, head of Ford Motor’s operations in Asia and Africa, told Reuters in April the Detroit automaker was looking at a lot of future opportunities with Chongqing Changan.
But he declined to say whether Ford was seeking to take Chongqing Changan’s commercial vehicles outside China, a move that would parallel rival GM’s earlier initiative.
Other foreign automakers, including PSA Peugeot Citroen, are also looking to expand their ties with their Chinese partners beyond China.
The French car maker hopes to export cars made at its manufacturing venture with Dongfeng Motor Group to the rest of Asia and possibly Russia as early as next year, its Asia chief Gregoire Olivier said.
However, Olivier told Reuters: “China will still be our major focus for many years and vast exports from China [are] unlikely until the market really starts to cool down.”
