Ford reconfigures partnership in China

Ford said in early December it was reevaluating its holdings in Asia as it moved toward closing a deal with Chinese automaker Geely, which had agreed to purchase Volvo, the Detroit Free Press reported Monday.

During the weekend, Ford said it was splitting up a joint agreement with Japanese automaker Mazda and China's Chongqing Changan by shifting joint ownership of two factories to create a 50-50 Mazda-Chongqing Changan project in one factory and a Ford-Chongqing Changan partnership in the other.

Among other brands, the partnership had been producing Volvos in China, the newspaper said.

"The joint venture has been successful over the years," Ford spokesman Mark Trudy said Sunday in a e-mail. "However, all partners are constantly looking at our joint ventures for opportunities to further optimize our business structure."

The majority of the cars produced by the partnership has been Ford brands, including Volvo, but the move also detaches Ford from Mazda in China.

In November 2008, Ford shed a large portion of its Mazda shares, reducing its Mazda holdings from 33 percent of the automaker to 13 percent.

Copyright 2010 by United Press International.