BEIJING (Reuters) -Changan Ford Motor plans to set up a new-energy passenger car joint venture with state-owned Chongqing Changan Automobile, according to a document published by China’s market regulator on Friday.
Changan Ford Motor will own a 60% stake and Chongqing Changan Automobile will have the remaining 40% stake.
In the future, the joint venture plans to engage in the “supply business of mainstream brand new energy passenger vehicles and the distribution business of Ford brand models that Changan Ford has invested in,” the statement said.
Sales of Ford with Changan fell 12.6% in the first half compared to the same period a year ago, according to data from China Association of Automobile Manufacturers.
More than 40 brands have cut prices in China since January after an initial move by Tesla in a fight for market share in the world’s biggest auto market, as car demand slumps, with ripples spreading through the wider industry.
(Reporting by Farah Master and Twinnie Siu in Hong Kong, Zoey Zhang in Shanghai and the Beijing Newsroom; Editing by Louise Heavens)
