Changan Auto, Ford discuss expanding ties beyond China

Major Chinese automaker Chongqing Changan Automobile (000625.SZ) is in talks with Ford Motor (F.N) to expand their partnership beyond China, a senior Chinese executive said.

Chongqing Changan, which makes Focus and Fiesta among other models with Ford and Mazda Motor (7261.T), is joining SAIC Motor Corp (600104.SS), seeking to expand the tie with its foreign joint venture partner beyond the current terms and conditions.

SAIC and its long-time partner General Motors GM.UL has set up a joint venture in India making SAIC's Wuling brand mini trucks and vans, a move that could expand GM's market share in India and give the top Chinese automaker access to a fast growing neighboring market.

When asked whether Changan -- a front runner in China's mini vehicle segment -- is planning to team up with Ford to tap overseas markets, Zhang Baolin, president of Chongqing Changan said: "We are having discussions with each other on that. We are doing some studies currently."

Zhang made the remarks on the sidelines of an industry forum in the northern municipality in Tianjin over the weekend.

Joe Hinrichs, head of Ford Motor's operations in Asia and Africa, told Reuters in April the Detroit automaker was looking at a lot of future opportunities with Chongqing Changan.

But he declined to say whether Ford was seeking to take Chongqing Changan's commercial vehicles outside China, a move that would parallel rival GM's earlier initiative.

Other foreign automakers, including PSA Peugeot Citroen (PEUP.PA), are also looking to expand their ties with their Chinese partners beyond China.

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