Jiangling Motors H1 net profit up 141% on sales boom

Shanghai July 20 (Gasgoo.com) Chinese automaker Jiangling Motors (000550), a commercial van partner of Ford Motor, last week said its net profit in the first half of the year increased 140.8% from a year earlier to 1.04 billion yuan ($153 million), with first-half revenue up 62.54% to 7.68 billion yuan, media reported.

The company said its profit margin expanded in the first half due to growth in sales and a decline in costs. Jiangling Motors's vehicle sales in the first half grow 65.7% from a year earlier to 88,363 units. The first-half sales included 25,227 Ford commercial vans, 34,157 Jiangling trucks, and 28,979 Jiangling pick-ups and SUVs.

In the same period, Jiangling Motors' output increased 61.66% from a year earlier to 84,068 vehicles. Ford's Transit produced by Jiangling proved popular commercial vehicles in China. Jiangling aims to sell 170,000 vehicles this year, and 200,000 next year.

Jiangling and Ford have started building a $300 million plant in Nanchang, capital of Jiangxi province. The plant, with an annual capacity of 300,000 vehicles, will start operation at the end of 2012.

Ford Motor, which holds a 30% stake in Jiangling Motors, said the new plant will make both Ford and Jiangling vehicles. The two companies already have two joint plants with annual capacities of 50,000 and 160,000 vehicles.