Ford Mulls New Brand for China

Ford Motor Co. is studying whether to create a new brand specifically for the Chinese market in cooperation with its Chinese partners, says Joe Hinrichs, president of the company's Asia Pacific and Africa unit.

The company currently sells Ford-badged vehicles in China through a car venture with Chongqing Changan Automobile Co. and a truck venture with Jiangling Motors Corp.

A China-only marque would allow Ford to sell low-priced models without tarnishing its namesake brand, according to analysts. They say such entry-level vehicles are key to success in China's smaller cities in the country's interior. But such a move would run counter to CEO Alan Mulally's strategy of shedding most brands to focus on the core Ford and Lincoln makes.

Foreign carmakers are increasingly establishing new makes with their Chinese partners to expand their offerings. General Motors' Baojun and Nissan's Venucia brands are recent arrivals. Daimler, Honda, Kia and Volvo are planning China-only marques.