Ford dispels rumor about stake increase in China

Shanghai (Gasgoo)- On October 23, local media reported that Ford Motor has the intent to increase the stake in Changan Ford, its joint venture with Changan Automobile and the American automaker might use new models as bargaining chips. However, both Changan Ford and Ford China denied the report shortly afterwards.

Fang Juntao, vice president of communications and public affairs, Ford China, said in an interview, “We never said that. We will not comment on the speculation. Currently, we are satisfied with the cooperation in China and will continue to work with our partners to meet the market demands.” Another executive from Changan Ford replied bluntly, “It’s impossible.”

On October 11, BMW announced that it intends to increase the stake in BMW Brilliance Automotive (BBA), its joint venture with Brilliance China Automotive Holdings Ltd. Both parties signed a corresponding agreement on that day. BMW’s intent to raise stake raised the speculation that more foreign automakers will increase the stake in their China joint ventures.

In the first three quarters this year, Ford China sales plunged 43% from a year ago while the cumulative sales declined 30% year on year. Industry analysts said that since Ford is under great pressure to restore sales, the dispute with local partners could worsen the situation.