Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, March 24, 1994 TAG: 9403240288
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
SOURCE: Knight-Ridder/Tribune
DATELINE: DEARBORN, MICH. LENGTH: Medium
The joint venture, valued in the tens of millions of dollars, is Ford's first in China. As many as six more could follow over the next year, said James Paulsen, recently appointed president of Ford's China operations.
Shanghai Automotive's Yan Feng Division and Ford's Plastic and Trim Products Division are expected to finish their agreement in coming weeks and submit it for approval to Chinese government officials.
If approved, the venture would supply parts for the Volkswagen Santana, a five-passenger sedan Volkswagen is building in a separate joint venture with the Chinese.
Ford's action is the latest move among automakers worldwide who are scrambling to get a piece of the burgeoning Chinese market. The Communist government there is loosening its grip on the economy and creating personal spending power for its 1 billion residents.
Paulsen said Ford is talking with another prospective partner and should have a feasibility study done by the end of the year. A vehicle-making joint venture could be announced in the first or second quarter of 1995.
He declined to discuss what vehicle might be built, but ``I would not rule out a multipurpose vehicle,'' such as a minivan or sport-utility.
Paulsen said Ford has been in talks for 18 months with various Chinese businesses to lock up other components business. The next announcement is likely to be a deal with Shanghai Yao Hua Glass Works to make glass for vehicles and buildings.
Ford also expects to export 4,000 to 6,000 North American-built cars to China this year, mostly Ford Tauruses, Mercury Sables and Lincoln Town Cars.
by CNB