Ford, Changan denies report of tie-up with FAW

Shanghai, May 8 (Gasgoo.com) Sources said recently that FAW Car and Ford have reached an initial agreement for FAW to buy into Changan Ford Mazda and that FAW is applying for the approval from the central government and expect the government's regulatory body to okay this deal. However, industry insiders of Ford and Changan Group all denied this report yesterday.

FAW has ever cooperated with Changan Ford Mazda. In March, 2006, the Mazda-3 vehicles, produced by Changan Ford Mazda, was sold by FAW Mazda Motor Sales Co.,which is the sole dealership of Ford's partner Mazda. Nevertheless, Mazda production suddenly stopped after selling for less than one month. Soon what came to light was that FAW and Changan Group were involved in quarrelling for sales rights of Mazda products. Finally FAW lost the sales rights in January this year.

"That is absolutely rumor,” said vice president of Ford China. “It is completely absurd and impossible for Ford join hands with FAW to compete with Changan in such a situation."  There is no evidence of FAW Car buying into or acquiring the production line of Changan Ford Mazda."

Changan has no intention to cooperate with FAW, said Zhou Qin, director of Public Relations department of Changan Group.