Ford, Changan are in talks over a plan to expand their partnership in India

Article by Christian A., on October 27, 2010

Talks are ongoing between Ford Motor Co. and Chongqing Changan Automobile Co. over a plan to expand their partnership in India, according to Chongqing Changan President Zhang Baolin. He said that the two automakers are considering all types of vehicles to be offered in India.

While attending a forum in Shanghai, Zhang told Bloomberg News that there are discussions with Ford to use their network to expand overseas but that no agreement has been reached yet.

Changan, which is based in Chongqing, China, joins Chinese automaker SAIC Motor Corp. in revealing plans to expand in India. In estimates by India's government, annual vehicle sales are seen to double to 3 million by 2015, due partly to increasing incomes and job creation.

Ford and Changan have been collaborating to sell and produce cars in China, under its joint venture Changan Ford Mazda Automobile. Zhang reported that the venture is “progressing well;” however, he declined to discuss a change in shareholding for the partnership.

Ford and Mazda Motor Corp. intend to dissolve their partnership in China and are coming up with separate working arrangements with Changan in the country.

Ford and Changan continue to discuss the matter and to date, there have been no decisions made on whether the vehicles to be sold in India would be Ford or Changan products. Ford, the second-largest US automaker, reported that its sales in India more than tripled to 7,925 last September.

SAIC and GM, which have jointly produced cars in China for more than a decade, revealed last December that they would team up to sell low-cost vehicles in India. [via autonews - sub. required]

Topics: ford, india, partnership

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