Ford has had a tough time with sales in South America. It stopped producing cars there and exited the heavy truck segment in South America. The automaker is now set to purchase an SUV from its Chinese partner Jiangling Motors and sell it in South America.
Ford has had a tough time building low-cost vehicles that are interesting to buyers in South America and other countries. The deal will see Ford’s trading company buy a Jiangling SUV called the CX743. The Chinese automaker said that Ford would ship the vehicle to designated South American countries.
The Ford Jiangling SUV deal is expected to generate $68 million in revenue for the Chinese automaker in 2020. Details on the financial terms of the agreement come from a regulatory filing that Jiangling Motors made with a stock exchange in the southern China city of Shenzhen. Jiangling is a three-way partnership between Ford and two Chinese state-owned automakers, including Changan Automobile Co. and Jiangling Motors Group.
In China, the joint venture builds the Transit van, Everest SUV, Tourneo multi-purpose vehicle, and Territory crossover for the Ford brand. The joint venture also assembles pickups, SUVs, vans, and light and heavy-duty trucks for its own JMC brand. There isn’t any detail on the CX743 SUV at this time, but it is marketed in China as a JMC branded vehicle. Ford also has a Chinese joint venture with Changan for passenger vehicles.
It’s unclear how many of the SUVs Ford plans to buy and sell in South America, or what specific countries it plans to sell them in. Ford China recently announced that it would build pickups in the country if restrictions on them relaxed further.
Source: Automotive News