Ford, China’s Changan cement collaboration in product, R&D, manufacturing, marketing areas

Shanghai (Gasgoo)- Chongqing Changan Automobile Co.,Ltd (Chongqing Changan) and Ford Motor have deepened their strategic cooperation to speed up the product upgrade and manufacturing strength of their joint venture Changan Ford, the Chongqing-based automaker announced on September 27.

The latest deal further confirmed the detailed cooperation fields after they signed a framework agreement in Detroit four months ago.

To boost sales in China, Changan Ford is to roll out at least 18 new models over the next three years. The first China-built Lincoln-branded SUV model is schedule to be mass produced at the joint venture's plant this year. Besides, the Ford Explorer will be locally produced next year, said Changan Automobile.

In August, Changan Ford rolled out three new models, the all-new Focus Active, the new Edge ST/ST-Line and the new Taurus, showing the determination to revive sales. According to Changan Automobile's sales report, the joint venture sold 108,001 vehicles through August. Its year-on-year decrease in sales of July and August was at 24.5% and 38.3%, evidently smaller than that of previous months.

Under the strengthened partnership, the Changan Ford institute will be established in a bid to improve the R&D and testing capabilities over the products targeting Chinese users. Aiming to design better vehicles suited to Chinese consumers' beauty taste and driving behaviors, it will be responsible for a wide range of links, including product planning, vehicle style and project management.

The step-up cooperation also embodies Ford Motor's sincerity to fortify its localization efforts in China. Through the aforesaid institute that will draw resources from two parent companies, the joint venture will strive to enhance localized R&D and testing abilities, and speed up product verification, so as to shorten the R&D cyclicality.

What's more, “promoting the localized production of Ford- and Lincoln-branded new models in China and being well prepared for the future localization of NEV models” were also highlighted by Changan Automobile.