Ford to Enter Chinese Commercial Truck Market

Jiangling Motors Corp., in which Ford Motor Co. holds a 30% stake, has agreed to acquire China's Taiyuan Changan Heavy Truck Co. for about 270 million yuan ($42 million).

The deal, which will make Taiyuan a wholly owned subsidiary of JMC, marks Ford's first entry into China's heavy-duty truck business. The U.S. company notes that China's commercial truck market is larger than North America, South America and Europe combined.

Taiyuan currently is owned by China Changan Automobile and China South Industries Group Corp. JMC makes SUVs and light commercial vehicles, including the Ford Transit van.

Ford tells Bloomberg News that Taiyuan will not produce trucks under the American company's brand. Details of the deal, including the final selling price, are still being determined.

Ford plans to triple its lineup in China by adding 15 new models all of them cars and light trucks in China by 2015. The company is building five assembly plants in the country that will boost its annual passenger car production capacity in China to roughly 1.5 million units by 2015.