Ford Holdings Jiangling Ford New Joint Venture, Changan Ford or under pressure

On January 26, Jiangling Ford Automobile Technology (Shanghai) Co., Ltd. (hereinafter referred to as Jiangling Ford Technology) was officially established, and the new joint venture company was jointly funded by Jiangling Motors Co., Ltd. (hereinafter referred to as Jiangling Motors) and Ford Motor. The two sides said that the establishment of Jiangling Ford Technology is a further upgrade of the cooperation between Ford Motor and Jiangling Motors, which will accelerate the landing of Ford's China 2.0 strategy.

According to Qixinbao data, Jiangling Ford Technology was jointly established by Jiangling Motors and Ford Motor with a joint investment of 200 million yuan, and the equity ratio between the two sides was 51%: 49%. But it's worth noting that Ford Motor Company also holds a 32 percent stake in Jiangling Motors, and Ford Motor Company's actual stake in the new company is more than 65 percent.

The company's business scope includes engineering and technical research and experimental development; sales of automobiles, new energy vehicles, new energy vehicle electrical accessories, charging piles; and technical consulting in the field of automotive technology. Jiangling Ford Technology said that its current operating products include: Ford Lingyu, Ford Lingrui, Ford Collar S, SUV Ford Frontier EV, SUV Ford Roadbreaker, MPV Ford Toureo.

People close to Ford told the first financial reporter that in the future, Ford will introduce a number of new products, including Ford pickup trucks, to the new joint venture. Earlier, there were media reports that Jiangling Ford would import Ford's fist product in the United States F series pickup trucks.

Xiang Dongping, president of Jiangling Ford Automotive Technology, said that the new joint venture is a new initiative of Jiangling Motors and Ford Motor in the passenger car business based on the common strategic goals, and will be committed to accelerating the expansion of the passenger car business, accelerating the improvement of channel capabilities, and promoting the innovation and upgrading of user experience; it will further meet the needs of the Chinese market, deepen the integration and mutual promotion of Ford Motor and Jiangling Motors in technology, products, marketing, services and other aspects, and meet the needs of Chinese consumers while pushing the global market from China as the base point.

In terms of sales channels, the new joint venture will rely on Jiangling Motors' nationwide sales network to integrate superior resources to achieve channel renewal. In 2021, Jiangling Ford Technology released Ford Motor's latest Global Family Space Home Space Ford Experience Store, and as of now, Jiangling Ford Technology has built 181 Family Space Home Space Ford Experience Stores in more than 150 cities across the country. The reporter noted that the inside and outside of the 4S store of Jiangling Ford Technology only have the brand LOGO and logo of Ford Motor, and there is no brand logo of both Chinese and foreign parties like other joint venture companies.

The above-mentioned people believe that after the establishment of Jiangling Ford Technology, Changan Ford, another joint venture company of Ford in China, will bear greater pressure, compared with Changan Ford with a 50:50 share ratio, Ford Motor is likely to import its superior resources into Jiangling Ford Technology, which is controlled, in the future.

In 2021, Ford China's annual sales reached 624,800 units, an increase of 3.7% year-on-year, of which the Lincoln brand sold 91,000 vehicles, an increase of 48% year-on-year. Changan Ford brand passenger car sales reached 192,300 units, up 4.7% year-on-year, and Jiangling Ford passenger car sales reached 30,200 units, up 6.2% year-on-year.