Ford's JV partner Changan warns about losses for 3rd quarter
Automotive News China
Automotive News | 2018-10-16
Chongqing Changan Automobile Co., which runs vehicle joint ventures with Ford Motor Co. and Mazda Motor Corp., estimates it lost 310 million to 810 million yuan ($44.8 million to $117.1 million) in the third quarter because of reduced investment returns from its joint ventures.|
The estimate is a stark contrast to the net profit of 1.19 billion yuan the state-owned automaker recorded in the same period last year, Changan said.
The company did not disclose the financial results of its joint ventures, Changan Ford or Changan Mazda.
For many years, Shanghai-listed Changan has relied on Changan Ford for profits. But sales declines of Changan Ford, which builds passenger vehicles for the Ford brand, have accelerated this year.
In September, Changan Fordí»s deliveries tumbled 60 percent year on year to 33,104 vehicles.
Sales of Changan Mazda, which produces Mazda-badged vehicles, slumped 19 percent to 15,546 last month.
Deliveries of Changaní»s proprietary brands also fell 19 percent to 128,713 vehicles in the month.
Because of the third-quarter losses, Changaní»s total net profit plunged 78 to 86 percent from a year earlier to between 800 million and 1.3 billion yuan in the first nine months of this year, Changan said.
Changan is headquartered in the southwest China municipality of Chongqing. Changan Ford is a 50-50 joint venture between Changan and Ford. Likewise, Changan Mazda is equally owned by Changan and Mazda.
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