Ford affiliate to expand into China's heavy-truck sector
BEIJING (Reuters) - Jiangling Motors Corp (000550.SZ), a major Chinese light commercial vehicle maker partly owned by Ford Motor (F.N), intends to expand into the country's heavy-truck business by taking over Taiyuan Changan Heavy Truck Co.
China is the world's largest market for heavy trucks with nearly 1 million units sold last year, Ford said, more than North America, Europe and South America combined.
Jiangling plans to acquire the company from China Changan Automobile and China South Industries Group Corp, Ford said on Wednesday. Both of Taiyuan's previous owners are affiliated with Chongqing Changan Automobile Co (000625.SZ), Ford's carmaking partner in China.
Ford did not disclose the value of the deal, which requires Chinese government approval. Taiyuan Changan's website says it is capable of producing 50,000 vehicles a year.
Jiangling, 30 percent owned by Ford, currently makes light commercial vehicles and SUVs, including the Ford Transit van. It sold 194,588 vehicles in 2011, up 9 percent from a year earlier, bringing in revenue of 17.5 billion yuan ($2.75 billion), Ford said.
Jiangling and Japan's Isuzu Motors (7202.T) said on Tuesday they were setting up two joint ventures to produce engines and light trucks.
($1 = 6.3664 Chinese yuan)
(Reporting by Fang Yan and Don Durfee; Editing by Matt Driskill)
- White House reverses, says Obama met uncle and lived with him during law school
- Flights delayed as air pollution hits record in Shanghai
- South Africa mourns Mandela, will bury him on December 15 |
- RPT-UPDATE 1-Ford leans on global Mustang to burnish overseas image
- Analysis: Boeing bidders dangle goodies to win 777X jetliner