Ford may restructure Changan Ford Mazda venture

Ford Motor Co. is talking to its partners in China about changing the structure of the three-way Changan Ford Mazda venture in the world's hottest car market, Joe Hinrichs, Ford's new president for Asia Pacific and Africa, told the Free Press Monday.

He also said that Ford, a latecomer to the Chinese market, aims to significantly boost its 2% market share there. "Clearly we believe that we should have a stronger presence than 2% of the market," he said. "We need to grow our business in Asia."

Hinrichs, 42, is a rising star among auto industry executives. His name often comes up in speculation about a successor to Ford CEO Alan Mulally, and has been among those mentioned as General Motors Co. searches for a new CEO to replace Fritz Henderson. Hinrichs worked for GM earlier in his career.

"I have not had any inquiries from General Motors. I'm happy to be at Ford," he said Monday. He had been Ford's group vice president of manufacturing and labor.

He brushed aside talk of future moves at Ford, saying, "I'm very happy working with Alan, working with the team we have right now."

His immediate tasks at hand include finishing the move of Ford's Asia Pacific headquarters from Bangkok, Thailand, to Shanghai -- 90% complete -- and reshaping China operations in the wake of Ford's reduced ownership stake in Mazda and its efforts to sell Swedish automaker Volvo.

Ford owns 35% of the joint venture Changan Ford Mazda. Chinese partner Chongqing Changan Automobile holds 50% and Japan's Mazda Motor Corp. the other 15%.

Since last year, Ford has reduced its ownership stake in Mazda from 33% to 11% by selling shares to raise cash. Another wrinkle in the Changan Ford Mazda situation is that the venture also builds some Volvos in China. Ford, which owns Volvo, is negotiating a possible sale of the Swedish firm to Chinese automaker Geely.

"Given changes in our controlling ownership of Mazda, we're talking among all the partners about what the optimal structure should be for the future," Hinrichs said of the Chinese joint venture.

Changan Ford Mazda expects to sell 320,000 vehicles in China this year, a 50% increase over 2008. About 70% of its output is Ford-branded vehicles. Work recently began on a new plant in Chongqing that will boost capacity in China to 600,000 vehicles by 2012, from 450,000 today.

Hinrichs earned praise for boosting Ford's product quality even as he led a reduction in its U.S. workforce.

Now he's responsible for sales, profits and losses on the other side of the world. "I've always enjoyed the holistic nature of having P&L responsibility," he said.

Especially, he didn't say but was probably thinking, in the world's fastest-growing car market.