Jiangling Motors Corp., in which Ford owns a 30 percent stake, will pay cash to acquire Shanxi province-based Taiyuan Changan Heavy Truck Co. from China Changan Automobile and China South Industries Group Corp., Ford said today.
The price is still subject to final deal terms, said Claire Li, a Shanghai-based spokeswoman for Ford.
"JMC's acquisition represents a great opportunity to continue to expand the breadth of our business in China across vehicle segments," said David Schoch, chairman and chief executive officer of Ford China. "A strong heavy truck operation like Taiyuan will complement Ford's existing passenger car and light commercial vehicle operations here in the world's largest and fastest-growing vehicle market."
Ford, seeking to accelerate its growth in China, plans to introduce 15 new vehicle models in the country by 2015.
The automaker and its partners are building five new plants, including a $300 million factory that will produce both Ford and JMC-branded vehicles.
Taiyuan Changan won't make Ford-branded vehicles, said Trevor Hale, a Shanghai-based spokesman for Ford.
The state-backed China Association for Automobile Manufacturers said on July 26 that commercial-vehicle sales may decline 3 percent this year to 3.91 million units, cutting its estimate from the previous prediction made in January for a 2 percent increase.