Ford Motor, JMC expand partnership to passenger vehicle with new joint venture
Beijing (Gasgoo)- Jiangling Motors Co., Ltd (JMC) and its second-largest shareholder Ford Motor intend to establish a joint venture company focusing on passenger vehicles, JMC announced on September 26th.
JMC equity distribution; photo credit: JMC
According to the announcement, the registered capital of the venture is RMB200 million. JMC has a stake of 51%, with RMB102 million invested, while Ford Motor put in RMB98 million, accounting for 49% of the company’s shares.
The two parties intend to expand their passenger vehicle business, improve distribution channels, and promote innovative experiences to consumers through the new joint venture, an executive from JMC revealed to a local media outlet. The partnership marks both parties’ new joint efforts in passenger vehicle business on top of their shared commitment toward commercial vehicle development.
Ford Motor is a minority holder of JMC at 32%, and the majority holder is Jiangling Investment, a joint venture between JMC Group and Changan Auto. Judging from the equity distribution, Ford Motor is on technology support duty while JMC owns more power of initiative.
In addition, at the end of August, JMC announced it has been in talks with Volvo’s truck arm Volvo Lastvagnar AB to sell its JMC Heavy Duty Vehicle Co. Ltd. subsidiary with a benchmark price of RMB781 million.
According to JMC’s 2020 annual performance results, the company’s revenue saw a year-on-year increase of 13.44% at RMB33.096 billion. Net profit skyrocketed 272.57% to RMB551 million from a year ago.
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