Ford has operated a joint venture in China with Jiangling Motors Corporation Limited (JMC) dubbed JMC Ford for 18 years now, which produces vehicles including the Ford Equator and Ford Equator Sport. However, the two companies have now finalized the terms of a new passenger vehicle joint venture dubbed Jiangling Ford Motor Technology (Shanghai) Co. Ltd., according to Chinese news source Gasgoo. Previously, JMC and Ford’s partnership focused mainly on commercial vehicles.
The new passenger vehicle joint venture utilizes a 51/49 split between Jiangling and Ford, respectively, and involves a registered capital of 200 million yuan ($31.394 million). The joint venture is permitted to manufacture and sell “oil-fueled vehicles, new energy vehicles, auto parts, PHEV-dedicated engines, charging piles, centralized fast-charging stations, battery swap facilities, and the facilities for NEV production testing,” according to documents filed by the venture.
The new entity is headquartered in Shanghai and will focus primarily on distributing JMC manufactured Ford vehicles in China, though it also has the ability to operate dealerships and utilize a direct-sales model. Xiang Dongping, vice president of JMC, previously noted that the new joint venture intends to focus on SUVs and crossovers in that market, a segment that The Blue Oval recently admitted is its main focus in China as well.
As Ford Authority reported yesterday, Chinese officials have decided to allow full foreign ownership of passenger car manufacturing in the country beginning January 1st, 2022, which means that joint ventures such as this one are no longer necessary for automakers like Ford to manufacture and sell vehicles in the country. It’s unclear how or if this change will affect Ford’s decision to partner with Chinese automakers in the future, but for now, as Ford already has an established relationship with Changan Automobile and JMC, this change will likely only affect new manufacturers seeking to enter the Chinese market.