JMC may purchase Changan's commercial vehicle subsidiary

Gasgoo.com (Shanghai July 13) - After decades of relative silence in the commercial vehicle industry, Jiangling Motor Corporation made a surprising announcement. Last week, the manufacturer confirmed that it would officially be absorbing fellow Jiangxi-based manufacturer Huaxiang Fuqi, increase its scope of operations in its home province.

Furthermore, a report appearing on auto.sina.com.cn today hinted that JMC may acquire the recently sold Chana Truck. Chana Truck's parent company, Changan Automobile, and chief shareholder, China South Industries Group, agreed to yield 100 percent of total stock in the company, valued at 270 million yuan ($42.79m). If JMC does indeed acquire Chana truck, it will mark a new phase of cooperation between the manufacturer and Changan, as well as its joint venture partner Ford.

In March of this year, JMC announced that it would be renewing its long-time partnership with Japanese manufacturer Isuzu, a Fortune 500 enterprise and leader in the realm of commercial vehicles. JMC's earlier light truck and pickups were all based off Isuzu designs. Officials from the manufacturer have previously stated their intent to continue cooperating with Isuzu. The cooperation with Isuzu, combined with a potential partnership with Changan, is a sign that JMC is putting serious thought into expanding its presence in the commercial vehicle market.