Ford, Mazda 3-way to split

• Source: Global Times
• [08:01 August 12 2010]
• Comments

Ford and its China venture partners, Mazda and Chongqing Changan Automobile, have received government approval to end their three-way agreement, the 21st Century Business Herald said Wednesday.

Ford and Mazda will each set up separate 50-50 joint ventures with Changan at the end of this year, the newspaper said, citing an unnamed source.

A Ford spokeswoman said the report was speculation, and a Mazda spokeswoman said she had no knowledge of the matter. Changan executives could not be reached for comment.

The future of the Changan-Ford-Mazda partnership had been in focus since Ford cut its stake in Mazda in 2008.

The partners had submitted a proposal to the Chinese government earlier this year to split the tie-up into two separate ventures, sources said.

Ford and Changan currently own 35 percent and 50 percent of the venture, respectively, with Mazda holding the rest.

Reuters