Ford Chinese JV to Split

An otherwise lucrative joint venture between American manufacturer Ford, the Japanese from Mazda and Chinese carmaker Chongqing Changan Automobile is about to come to a conclusion in the near future, as reports say the Chinese government has approved the separation. The request for separation, sources say, has been submitted ever since earlier this year.

The news, although not yet confirmed, would mean that the three decided to give up the complex arrangement they had until now in favor of a more accessible one. According to, citing a report by the 21st Century Business Herald, after the separation, both Ford and Mazda will set up separate joint ventures with Changan by the end of the year.

Currently, Ford holds 35 percent of the joint venture, Mazda only 15 percent and Changan 50 percent. The new structure will see two joint ventures, owned 50-50 by each of the three partners. More details are expected to be made public soon.

If indeed true, the brake-up of the joint venture will not mean Ford will let China slip from its sights. As is the case with most of the American and German manufacturers, China is becoming a type of a promised land, a safe-heaven during times of economic recession.

In Ford's case, the booming Chinese market registered an increase of 53 percent for the month of June, compared to a year ago. The 301,524 units sold there represent a record in itself for the American manufacturer. In all, Ford's passenger car joint venture in China, Ford Mazda Automobile (CFMA), sold 46 percent more vehicles (205,563 units).
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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