More details of revamped joint ventures in China involving Chang’an Automobile Group, Ford and Mazda have been revealed.
The three-way joint venture between the three automakers ended recently following a lengthy procedure that began in 2010.
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The restructuring plan for Changan Ford Mazda Automobile (CFMA) recently received final approval from the Chinese government.
The three-way JV, CFMA, will be restructured into two separate joint ventures, Changan Mazda Automobile (Changan Mazda) and Changan Ford Automobile.
Changan Mazda, a 50:50 joint venture, has been incorporated in Nanjing and will assume all of CFMA’s Mazda-related business, including vehicle development, manufacturing, marketing and sales in China.
Ford Motor China spokeswoman Li Ying told China Daily the partnership between Ford and Chang’an will retain the Chongqing plants from the former three-way venture, as well as a plant that just broke ground in Hangzhou in August.
Existing facilities in Nanjing will be left to Chang’an Mazda, she said.
Ford’s Fiesta model will continue to be built at the Nanjing plant, but for how long is uncertain, she said.
The restructuring was initiated as Ford began to shed its former controlling stake in Mazda. The new partnerships are expected to help both foreign carmakers in China as they are now free to focus on their individual development, industry analysts said.
Ford first established a 50-50 joint venture with Chang’an in 2001. Five years later, Mazda joined with a 15% stake, reducing Ford’s share to 35%.
Ford was then the majority shareholder in Mazda but began to sell its holdings in 2008. It now has just 3.5%.
Ford sold about 520,000 vehicles in China last year, far behind sales by GM and Volkswagen, both of which sold well over 2m vehicles.
Observers told China Daily one reason the Fiesta would to be made in Nanjing is the factory would otherwise be mostly idle due to falling Mazda sales.
Ford breaks ground on new Hangzhou plant
