Ford unlikely to sell its stakes in China ventures

Shanghai, October 16, 2008: (Gasgoo.com) An earlier report by Wall Street Journal said that Ford Motor Co. is considering the sale of its controlling stake in Japan's Mazda Motor Co. as the second-largest U.S. automaker tries to steady its finances amid slumping sales, while Luo Jingling, auto industry expert, told the East Morning Post that Ford's joint venture in China will not be seriously affected as it is still profitable in the Chinese market.

Li Chunbo, analyst of Citic Securities Co., Ltd, said, it is possible for Ford to sell stocks of Mazda following it sold out Land Rover and Jaguar models previously, but Ford is not likely to sell its Chinese joint ventures.

Ford China declined to make comment about current rumors. Industry insiders believe the Chinese market is promising in the long term though the auto market suffered declines recently, and China is likely to become the last straw for international auto giants to struggle for surviving in the financial crisis.

Ford's joint ventures in China include Changan Ford Mazda and Jiangling Auto, holding 35% and 30% stocks respectively. In addition, Mazda, 33% stocks controlled by Ford, has the joint venture FAW-Mazda sales Co, in which FAW holds 60% stocks and Mazda holds 40%.

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