Ford Affiliate Buys Truck Maker In China
NEW YORK (AP) — Ford Motor Co. is entering the heavy truck business in China with an affiliate's acquisition of Taiyuan Changan Heavy Truck Co.
Financial terms were not disclosed.
Jiangling Motors Corp., or JMC, which is 30 percent owned by Ford, is paying cash for the truck maker. China Changan Automobile owns 80 percent of Taiyuan and China South Industries Group Corp. owns the other 20 percent.
Ford said the deal will be completed once JMC gets approvals from the Chinese government.
Ford plans to expand in China with 15 new vehicles by 2015. Along with partners, it's building five new plants including a $300 million facility in Nanchang, where JMC is based. The plant will be capable of producing 300,000 JMC and Ford vehicles a year when it opens in 2013, Ford said.
The U.S. vehicle maker said it has invested $4.9 billion in China so far.
Ford shares rose 4 cents to close at $9.35.