TAIYUAN, China — Ford knows trucks. And now it will be selling heavy trucks China as the company’s local commercial vehicle investment recently unveiled its heavy-duty truck manufacturing base, officially entering the segment in the world’s largest market.
Jiangling Motors Corporation (JMC) signed an equity transfer agreement of Taiyuan Changan Heavy Duty Truck Co. Ltd in August 2012, acquiring a 100 percent stake in the company to build a new manufacturing base in northern Shanxi Province.
The unveiling of JMC Heavy Duty Vehicle Co. Ltd (JMCH) marked the latest progress of the buyout, seeing the completion of the restructure plan. John Lawler, chairman and CEO, Ford China, together with York Chen, JMC president, attended the ceremony with other JMC executives.
“Ford has been an industry leader since its inception more than 100 years ago,” said Lawler. “The JMC heavy duty truck restructure plan offered the right time to start a business that has been making some progress.”
Ford holds a 30 percent stake in JMC, which currently manufactures light commercial vehicles and SUVs, including the Ford Transit, which it has been producing since 1995.
Demand for heavy duty trucks is expected to continue to pick up steadily given China’s long-term economic growth potential and strong investments in infrastructure by the Chinese government. The restructure plan reflects the company’s commitment to make inroads into the segment while focusing its efforts on the commercial vehicle industry in order to achieve a leading position in the realm.
“JMC Heavy Duty is a key component to Jiangling’s vision for the future,” said Liao Zanping, vice president, JMC, and general manager of JMCH. “With the support of Ford and the local government here in Taiyuan, we are committed to building a nation-top company with international influence, benefiting our shareholders, employees and local communities.”
The restructure plan reflects JMC’s determination of entering the market’s heavy truck segment.