Beijing (ZXZC)- On August 11, China’s Anti-Monopoly Enforcement Bureau of the State Administration for Market Regulation has revealed that Changan Ford Automobile Co., Ltd. ("Changan Ford") intends to establish a new joint venture with Chongqing Changan Automobile Co., Ltd. ("Changan Automobile").

Mustang Mach-E; photo credit: Changan Ford

The forthcoming joint venture is expected to engage in the supply of mainstream brands’ new energy passenger vehicles and the distribution of Ford brand models already invested in by Changan Ford. Following the transaction, Changan Ford and Changan Automobile will hold a respective 60% and 40% equity stakes in the joint venture, resulting in shared control.

Established in 2001, in Chongqing, China, Changan Ford primarily focuses on vehicle manufacturing and sales. Notably, Changan Automobile holds a 50% equity stake in Changan Ford, effectively conferring it with a 70% ownership in the new yet-to-be-established joint venture.

Recently, Changan Ford announced that it has transitioned the operational responsibilities for the Ford Mustang Mach-E model to Changan Automobile in the Chinese market starting from August 1. According to China Association of Automobile Manufacturers data, Ford Mustang Mach-E recorded modest annual sales in China for 2022, numbering in the thousands. During the first half of this year, average monthly sales dwindled to approximately 300 units, with the highest and lowest monthly figures reaching 1,050 and 84 units, respectively - well below the previous year's average.

Ford China's President and CEO, Sam Wu, emphasized the company's commitment to the Chinese market, aiming to leverage the strengths of the Ford brand and products, foster enduring partnerships, sustainably evolve, and steadfastly complete the transition toward electrification.