Changan Ford Plans To Set Up Electric Car JV In China: Report
Portfolio Pulse from Nabaparna Bhattacharya
Ford Motor Company's unit Changan Ford Motor plans to establish an electric car joint venture (JV) with China's Chongqing Changan Automobile. Changan Ford will own a 60% stake and Chongqing Changan Automobile the remaining 40%. The JV will be involved in the business of new energy passenger vehicles and the distribution of Ford brand models. Ford's sales with Changan dropped 12.6% Y/Y in the first half of the year.
August 14, 2023 | 12:00 pm
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Ford is setting up a new JV with Chongqing Changan Automobile to focus on electric vehicles and Ford brand models. This comes as Ford's sales with Changan dropped 12.6% Y/Y in the first half of the year.
The establishment of the JV could potentially boost Ford's presence in the electric vehicle market. However, the recent drop in sales with Changan might indicate some challenges in the Chinese market. The impact on the stock price is uncertain in the short term.
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