Ford enters China with $40m stake
Thursday 24 August 1995
Ford, the US automotive group, has opened a door to the potentially vast Chinese market by agreeing to buy a 20 per cent stake in Jiangling Motors Corp for about $40m (pounds 25m). The two have also agreed to develop a new line of trucks, vans and mini-buses for sale in China and for export.
Under the agreement, Ford will appoint three senior executives to Jiangling's board and will participate in the company's management. Wayne Booker, vice president of Ford's international automotive operations, said: "The co-operation with JMC forms an integral part of Ford's global strategic planning. It marks a significant step in Ford's development of the PRC [China] market."
Ford will take 80 per cent of Jiangling's class B shares, which are reserved for foreign investors. The shares are expected to be issued later this year.
The landmark deal marks Ford's first car manufacturing operation in China. The carmaker already has four other joint ventures making car parts and components but has lagged rivals, including General Motors and Chrysler, in expanding into vehicle production in China.
Most of Ford's $40m investment will go towards boosting Jiangling's annual capacity to 110,000 vehicles from 50,000. The joint venture will make trucks and vans but will focus on mini-buses, the most profitable and suitable for the China market. The vehicles will contain about 60 per cent locally produced components.
Ford and Chrysler lost out to Germany's Mercedes-Benz in bidding for a $1bn project to build 60,000 mini-vans a year in China.
Ford will continue to bid for other car projects in China, including a "family car" project and an intermediate car project with Shanghai Automotive Industry Corporation.
South Korea ferry: Sewol captain says he is 'sorry to the people of South Korea' and that he delayed evacuating ship in case passengers 'drifted away'
Easter egg hunt horror as mother finds dead body under deck of house
Missing Malaysia Airlines Flight MH370: Wreckage could be found within a week as search reaches 'very critical juncture', says minister
Loch Ness Monster found on Apple Maps?
Royal Tour 2014: Is the Duchess of Cambridge the only person ever to climb into a fighter jet wearing a dress and high heels?
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
'Sinful': Video of British Muslims dancing to Pharrell Williams's hit Happy comes under attack
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
Refugee facing deportation from Sweden saved by fellow passengers refusing to let plane leave
- 1 Easter egg hunt horror as mother finds dead body under deck of house
- 2 'Natural' energy drink banned for containing erectile dysfunction drug
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Loch Ness Monster found on Apple Maps?
- 5 Kingdom Tower: Construction of 1km high new world’s tallest building to begin next week in Saudi Arabia
iJobs Money & Business
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£221.25 per week: QA Apprenticeships: This company is a well established Inter...
£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...
£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...