Ford increased its stake in Jiangling Motors to 31.5% and next year it plans to reach 32%.
This year so far Ford has purchased 13, 002, 396 dollar-denominated B-shares in Jiangling, which account for 1.5% of the Hong Kong automaker’s outstanding shares. Ford said that next year it plans to increase the stake to 32%, the maximum currency allowed by the securities regulator. Currently, Fiat’s stake is worth around $705 million.
“We will continue to evaluate the market for JMC equity and may purchase the remaining portion of the 2 percentage points between now and January 20, 2014,” said Ford.
During the first quarter Jiangling sold 56,420 JMC light trucks, Ford Transit vans and SUVs, an increase of 7.1% compared with the same period last year, surpassing the increase of 2.5% in China’s overall commercial vehicle sales.
In August last year Jiangling said it planned to take over Taiyuan Changan Heavy Truck, part of its strategy to expand in China. China, which the world’s largest market for heavy trucks, managed to sell 1 million vehicles in 2011, more than Europe, South America and North America combined. Ford did not offer any information about the value of the deal, which now waits for the approval of the Chinese government.