Approval from China's top economic planner will mean more flexibility and stronger sales for Ford.
The National Development and Reform Commission has granted permission to Ford to separate its three-way joint venture with Mazda Motor Corp and Chang'an Automobile Co, paving the way for the US car giant to strengthen its position in the world's largest auto market. Ford CEO Alan Mulally told reporters he felt “appreciative and encouraged” with the decision and is optimistic about the company's future in China.
While NDRC approval basically makes the split a “done deal”, the reorganisation is still subject to approval from the Ministry of Commerce, State Administration of Industry and Commerce and the Ministry of Industry and Information and Technology, according to Ford.
The ubiquitous car brand has been playing catch up to its European and Japanese rivals, with production stagnating for the past few years. Still, Ford is confident the split will grant it more freedom in making strategic decisions and has already laid out ambitions plans for the Chinese market over the next few years.
Sales increased by a year-on-year record of 39% in August, with robust demand for the compact Focus and other passenger cars driving purchases forward. Ford sold 48,631 units during the month, putting its yearly total at 368,513 as it entered September.
Ford has begun work on two new factories in Chongqing and Hangzhou which, upon completion in 2015, will double the carmaker's capacity to 1.2 million cars annually.