Ford in Talks to Make Lincoln Vehicles in China

Ford Motor Co. and Chinese partner Changan Automobile Group are discussing plans to build Lincoln luxury vehicles in China, sources tell Bloomberg News.

Ford introduced Lincoln in China in 2014 and sold more than 11,000 units in the first year. The company tells Bloomberg that Lincoln’s long heritage in the U.S. has generated a strongly positive image in the country.

Local production would avoid China’s 25% import tax, making Lincoln models more competitive with such rivals as Audi, BMW and Mercedes-Benz. The brand currently is represented in China by four imported models, including its MKZ sedan and Navigator SUV. The latter model currently retails there for nearly 1 million yuan ($150,500).

Ford has said it aims to increase the number of Lincoln dealers in China by 50% to 60 by the end of 2015.