Ford Authority

Changan Ford Sets Up New Joint Venture Amid Strategy Shift

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.

We’ll have more on Changan Ford soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

Subscribe to Ford Authority

For around-the-clock Ford news coverage

We'll send you one email per day with the latest Ford updates. It's totally free.

No Comments yet

Leave a comment