Ford Motor and its China venture partners, Mazda Motor Corp and Chongqing Changan Automobile Co, have received government approval to end their three-way agreement, the 21st Century Business Herald newspaper said on Wednesday.
Ford and Mazda will each set up separate 50-50 joint ventures with Changan at the end of this year, the newspaper said, citing an unnamed source.
A Ford spokeswoman said the report was only speculation, while a Mazda spokeswoman said she had no knowledge of the matter. Changan executives could not be reached for comment.
The future of the Changan-Ford-Mazda partnership had been in focus since Ford cut its controlling one-third stake in Mazda in 2008 to free up cash.
The partners had submitted a proposal to the Chinese government earlier this year to split the tie-up into two separate ventures, sources said.
Ford and Changan currently own 35 per cent and 50 per cent of the venture, respectively, with Mazda holding the balance.
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