Changan and Ford started negotiations on heavy truck joint ventures from the beginning of last year and finally decided to set off on Jiangling Motors.


Ford Heavy Trucks On Wednesday, Jiangling Motors issued an announcement stating that it would acquire all the equity of Taiyuan Zhongqi with a consideration of RMB 270 million and enter the heavy truck market. Taiyuan Heavy Duty Truck may introduce Ford's technology and products in the future.

In May last year, China Chang'an Group confirmed that it will build a joint venture with Ford for heavy trucks. The two parties will establish a new joint venture company based on Changan Holdings’ Taiyuan Zhongqi and expand the Chinese heavy truck market. However, this plan was eventually overturned.

Both Changan and Ford are shareholders of Jiangling Motors. Ford currently imports Citroen Lights products from Jiangling Motors. After Jiangling Motors purchased Taiyuan CNHTC, it will be able to quickly enter the heavy truck market and expand its development space. From the perspective of Changan and Ford, it is also possible to better integrate the cooperation relationship. The operation of the heavy truck project by Jiangling Motors, which has a better foundation, is beneficial to the development of all parties.

According to statistics, the total assets of Taiyuan Zhongqi as of the first quarter of this year were 790 million yuan, while the net assets were only 250 million yuan. The loss in 2011 was 140 million yuan. The loss in the first quarter of this year was 73.09 million yuan, and the final transfer price was 269 million yuan. .

Since Taiyuan Heavy-Duty Truck was incorporated into Changan in 2007, the development situation is not ideal and it has not been able to complete the original three-year development goals. As a result, the introduction of the Ford JV has become a new development idea.

For Changan and Ford, the heavy truck is a project where both parties need to make up classes. Among the four major automobile groups, heavy trucks are a weakness of Chang'an. In the past two years, Ford has implemented a radical passenger vehicle expansion plan in China, relying mainly on this carrier of the Changan Ford joint venture. Jiangling Motors has been positioned by Ford as a carrier for commercial vehicles. After importing the heavy truck program, Ford will complete a more complete product layout in China.



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