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Changan Ford Motor to set up electric car JV with Chongqing Changan Auto By Reuters

© Reuters. FILE PHOTO: Workers assemble vehicles at a plant of Changan Ford, a joint venture between Changan Automobile and Ford Motor Company, in Harbin, Heilongjiang province, China February 22, 2017. REUTERS/Stringer/File Photo

BEIJING (Reuters) -Changan Ford Motor (NYSE:) plans to set up a new-energy passenger car joint venture with state-owned Chongqing Changan Automobile, according to a document published by China’s market regulator on Friday.

Changan Ford Motor will own a 60% stake and Chongqing Changan Automobile will have the remaining 40% stake.

In the future, the joint venture plans to engage in the “supply business of mainstream brand new energy passenger vehicles and the distribution business of Ford brand models that Changan Ford has invested in,” the statement said.

Officials at Ford and Changan could not immediately be reached for further comment.

Sales of Ford with Changan fell 12.6% in the first half compared to the same period a year ago, according to data from the China Association of Automobile Manufacturers.

More than 40 brands have cut prices in China since January after an initial move by Tesla (NASDAQ:) in a fight for market share in the world’s biggest auto market, as car demand slumps, with ripples spreading through the wider industry.

This story originally appeared on Investing

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