Changan Ford Plans To Set Up Electric Car JV In China: Report

Ford Motor Company's F unit Changan Ford Motor plans to set up an electric car JV with China's Chongqing Changan Automobil.

Changan Ford Motor will own a 60% stake and Chongqing Changan Automobile the remaining 40% stake, Reuters reported, citing a statement from a document published by China's market regulator.

Changan Ford is a 50-50 joint venture between Ford Motor and Changan Automobile. This implies that Chongqing Changan will own more than 50% of the new venture, Reuters notes.

Also Read: Ford CEO Shares Charging Reality Check From F-150 Lightning Road Trip: 'This Is Why We're Working With Tesla...'

The report adds that the JV will be involved in the business of brand-new energy passenger vehicles and the distribution business of Ford brand models that Changan Ford has invested in.

Ford said the new venture also will sell existing Ford-brand gas-powered vehicles, which Reuters have noted. 

Also See: Ford Plans To Incorporate New Software To Boost Revenue For Commercial Trucks, Vans: Report

Sales of Ford with Changan slumped 12.6% Y/Y in the first half, China Association of Automobile Manufacturers data showed, the report mentioned.

Price Action: F shares are trading lower by 0.58% to $12.07 premarket on the last check Monday.