Xu Ping, Chairman of CSIGC, and Jim Hackett, President and CEO of Ford Motor Co., signed the agreement on behalf of the two parties.
BEIJING – China South Industries Group (CSIG), parent company of Chang’an Automobile Co., Ltd., signed a framework agreement on December 7 with Ford Motor Co. to deepen their strategic partnership.
Key components of the new agreement include local production of the Lincoln brand at their joint venture Chang’an-Ford and establishment of a new integrated sales organization for the JV in China.
The agreement is part of Ford’s “China 2025 Plan” announced on December 5, which will see the U.S. automaker introduce more than 50 new vehicle models into the Chinese market by 2025, and Chang’an-Ford will speed up the pace and force of introducing new Ford models.
“The localization production of more vehicle models will bring more benefits to our customers, partners and financial earnings,” said Peter Fleet, vice president of Ford and president of Ford Asia Pacific.
Zhang Baolin, chairman of Chang’an and vice president of CSIG, thought that the introduction of vehicle models covering more market segments has laid a solid foundation for the cooperation of Chang’an and Ford. “The signing of the agreement is in line with the trend of the change of China’s auto market and meets the common development vision of the two partners,” said Zhang.
Existing marketing, sales and aftersales service departments of Chang’an-Ford will be integrated into a new national sales and service organization in charge of marketing, sales and aftersales service of all Ford brand passenger vehicles in China. The move is expected to unify Ford’s image in China and quickly respond to market changes, so as to provide consumers with unified, convenient and fast service.
In addition, the two sides will also adopt a series of measures in the future to enhance Chang’an-Ford’s R&D capabilities and quicken the pace of new product introductions, upgrades as well as vehicle electrification. They will also strengthen cooperation in the areas of new energy, intelligent vehicles, resource sharing and auto financing.