After previously designing and developing models specifically for that market, Ford China has since named a new president and CEO while simultaneously rebooting its strategy in a hotly contested market. Aside from trimming jobs and improving profitability, The Blue Oval is preparing to launch the Ford Bronco SUV and Ford Ranger pickup in the Chinese market, and just let its joint venture in that country – Changan Ford – assume sales and marketing responsibilities of the slow-selling Ford Mustang Mach-E, too. Now, Changan Ford has set up a new joint venture of its own amid this ongoing shift in strategy, according to Reuters.
Changan Ford is reportedly in the process of setting up a new-energy passenger car joint venture with Chongqing Changan Automobile, which is owned by the state. Pending approval, Changan Ford would own a 60 percent stake in the new entity, with Chongqing Changan Automobile assuming the remaining 40 percent. However, since Changan Ford is a 50-50 joint venture between Ford and Changan Automobile, this means that Chongqing would actually own more than half of the newly created joint venture.
According to The Blue Oval, the purpose of this joint venture is “to better grasp the development trend of electrification and intelligence in the auto industry,” and the company plans to “supply business of mainstream brand new energy passenger vehicles and the distribution business of Ford brand models that Changan Ford has invested in,” as well as existing gas-powered vehicles that bear the Ford brand.
It’s unclear if this move is also being made with the intentions of further minimizing Ford’s exposure in China, but the automaker has been quite clear that it’s on a mission to revamp its business model there in big way, particularly after Changan Ford sales declined by 12.6 percent in the first half of 2023 versus the same period last year.