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October 25, 2004

CHINA: Ford partner Chongqing Changan holds restructuring talks

Chongqing Changan Automobile Co., a local partner of Ford Motor Co., has said it is in talks with Jiangling Motors Corp. about restructuring, but no agreement has been finalised.

By bcusack

Chongqing Changan Automobile Co., a local partner of Ford Motor Co., has said it is in talks with Jiangling Motors Corp. about restructuring, but no agreement has been finalised.

Dow Jones said Changan Auto issued the statement over the weekend after local media cited unnamed sources as saying Ford might increase its share in Jiangling. The statement didn’t respond to the speculation involving Ford.

The local Securities Times reported over the weekend that Ford intended to raise its 30% stake in Jiangling, Dow Jones added.

The news agency noted that Ford currently builds Mondeo and Fiesta sedans at Ford Changan’s plant in Chongqing, a sprawling municipality in western China. It also builds Ford Transit light trucks in Jiangxi province through Jiangling Motors, a Chinese light truck and van-making company.

In the third quarter, Changan recorded a 32% drop in its net profit to 246 million yuan ($US30 million) from a year earlier, while Jiangling said its net profit more than halved to CNY59.8 million in the third quarter from a year ago, Dow Jones added.

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