After receiving government approval Ford and Mazda have split but formed new JVs.
The lengthy separation of the three-way joint venture between Chang’an Automobile Group, Mazda and Ford has finally come to an end. In September 2012, the National Development and Reform Commission approved the split and now the consent of China’s Ministry of Commerce, State Administration of Industry and Commerce and the Ministry of Industry, Information and Technology has ended the lengthy procedure, which started back in 2010.
The two foreign carmakers have already formed independent 50-50 joint ventures with Chang’an and have already begun restructuring their China operations. A spokesperson for Ford Motor China told the China Daily that the Ford-Chang’an JV will retain the Chongqing and Hangzhou plants, while facilities in Nanjing will be left to Mazda.
The split will enable Ford to ramp up its aggressive expansion into China, where its sales lag far behind its car giant rivals. Last year, Ford sold 520,000 in the region, compared to well above 2 million vehicles bought from GM and Volkswagen.
Ford’s expansion plan will introduce 15 new vehicles, including the Kuga and the EcoSport SUV model, investing heavily in new facilities and doubling production to 1.2 million vehicles per year by 2015.
Mazda's sales, on the other hand, have tumbled since October as a result of frosty Sino-Japanese relations, with vehicle sales dropping 11.3% between January and November to 170,000 units.