China OKs Ford JV's request to reorganize
China's government has approved Changan Ford Mazda Automobile Co.'s request to break itself up into two new joint ventures, according to a Chinese newspaper.
The three-way joint venture will be split into a 50-50 partnership between Changan Automobile Co. and Ford Motor Co., plus a second 50-50 partnership between Changan and Mazda Motor Corp., reported the 21st Century Business Herald, a business daily.
To win Beijing's approval, Mazda agreed to create a new brand, develop electric vehicles and build an r&d center for its joint venture, the newspaper reported.
In 2001, Changan, Ford and Mazda formed a 50-35-15 joint venture in the southwest China city of Chongqing. The new Changan-Ford venture will remain there, while the Changan-Mazda venture will be based in eastern China's city of Nanjing.
Changan Ford Mazda has two vehicle assembly plants. The Chongqing plant mainly builds Ford models, while the Nanjing facility mostly produces Mazdas.
