JMC(SZ:000550) Mei Ri Jing Ji Xin Wen·2025-09-23 13:57Core Viewpoint - The integration of sales channels for Jiangling Ford and Changan Ford is aimed at enhancing operational efficiency and brand experience in the competitive Chinese automotive market, with a new wholly-owned subsidiary, Ford Sales Service Company, established to manage these channels [1][4][8]. Group 1: Company Structure and Management - Jiangling Motors has signed a distribution service contract with Ford Sales Service Company to manage the sales of Ford-branded passenger cars and pickups produced by Jiangling [1][4]. - Ford Sales Service Company will oversee over 300 marketing channels, combining approximately 110 from Jiangling Ford and 270 from Changan Ford [5][9]. - Chen Xiaobo has been appointed as the president of Ford Sales Service Company, bringing extensive experience from previous roles within Ford's joint ventures in China [5][8]. Group 2: Market Strategy and Product Development - The integration is seen as a significant move for Jiangling Motors to strengthen its position in the passenger vehicle sector, with plans for new product launches, including the Ford "Intelligent Mustang" electric vehicle [9][10]. - The new sales structure aims to provide a unified brand experience and improve dealer operational efficiency and profitability [8][10]. - The transition to a unified sales channel is part of a broader strategy to enhance Ford's brand image and product offerings in China, aligning with industry trends towards electrification and smart technology [11]. Group 3: Financial Implications - Jiangling Motors and Ford will jointly increase capital in Jiangling Ford Automotive Technology (Shanghai) Co., Ltd., with Jiangling contributing approximately 1.264 billion yuan through debt-to-equity conversion and Ford contributing about 1.214 billion yuan in cash [9][10]. - This capital increase is intended to clear debts and facilitate a smooth transition as the company moves towards a more streamlined operational model [10].