JMC and Ford to Buy Taiyuan Changan Heavy Truck in China

Posted on 8 August 2012 by Ken Zino
AutoInformed.com

“Ford has enormous experience and world-class products and technologies, including in the heavy truck business.”

Ford Motor Company is reentering the heavy truck market through its partner Jiangling Motors Corporation in China. JMC will buy Taiyuan Changan Heavy Truck Company, its first entry into the heavy truck business. JMC currently builds Ford Transits under license from Ford, and Ford owns 30% of the light commercial vehicle maker.

As part of the agreement, JMC will pay cash for the 80% currently held by China Changan Automobile and the 20% holding of China South Industries Group Corporation. Upon completion of the deal, Taiyuan Heavy Truck in Shanxi Province will become a wholly-owned subsidiary of JMC. A stock market filing said the deal was worth about $42 million.

JMC sold more than 190,000 vehicles in 2011, bringing in revenue of 17.5 billion Yuan  or ~$2.7 billion. China is the world’s largest heavy truck market, with more heavy trucks – 1 million – sold last year than in Europe, North America and South America combined. The light commercial market is about as large as the passenger vehicle market in China, making China by far the world’s largest vehicle market.  LMC Automotive’s China forecast  is 19.47 million units this year, up 8.2% from 2011.

“Ford has enormous experience and world-class products and technologies, including in the heavy truck business, which can be deployed to support JMC after the acquisition,” said Dave Schoch, chairman and CEO, Ford Motor China.

Last year Ford sold 519,000 vehicles in China, where it badly lags well-established competitors such as General Motors or Volkswagen Group, which outsell Ford by a 5:1 or 4:1 ratio, respectively.

Ford’s wholly owned subsidiaries, joint ventures and investment in China include Ford Motor (China) Limited, Ford Motor Research & Engineering (Nanjing) Co., Ltd., Ford Automotive Finance (China) Ltd., Changan Ford Mazda Automobile Co., Ltd., Changan Ford Mazda Automobile Co., Ltd. Nanjing Company, Changan Ford Mazda Engine Co., Ltd. and Jiangling Motors Co., Ltd.

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About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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