Ford may expand partnership with Changan

Ford Motor Co is looking at options to expand its partnership with Chongqing Changan Automobile Co (000625.SZ) beyond the terms of the current joint venture the automakers have in China, a senior executive said on Saturday.

"We have a strong partnership with Changan and we're talking about a lot of opportunities for the future," said Joe Hinrichs, who heads Ford's operations in Asia and Africa.

Hinrichs declined to say whether Ford would look to bring Changan commercial vehicles to markets outside China, a step that would parallel the move recently announced by rival General Motors.

GM GM.UL and its China joint-venture partner SAIC announced a deal last year to set up a joint-venture in India. GM expects the partnership to double its market share to nearly 10 percent of the Indian vehicle market with the addition of work trucks manufactured under the Wuling brand.

Hinrichs, speaking to Reuters on the sidelines of the Beijing auto show, said Ford's senior management was focused on the growth opportunity in markets like China now that a painful restructuring in its home market is behind.

"We want to grow and we know we need to grow and we know we need new products to do that," Hinrichs said of Ford's China operation.

Ford sells the Fiesta small car, the Focus and Mondeo sedans and a version of the Transit Connect utility van in China. It will add the Edge crossover this year but trails market leaders like VW and GM in the breadth of its offering.

The automaker showed off a concept car with a 1-liter, 3-cylinder engine with direct injection and turbocharging, an extension of the "Ecoboost" engine line it has used to improve performance and fuel economy in larger vehicles. Ford says the engine will power future small cars but has not committed to making a microcar for China.

"I don't think you have to have (a vehicle) for every segment in China, but I think you have to have scale for your dealers and suppliers and for your partners in manufacturing," Hinrichs said. "We have some opportunity there."