Jiangling Ford Technology Ceases Operations

[Joint Venture Exit] Jiangling Ford Automotive Technology (Shanghai) Co., Ltd. has confirmed it has ceased operations.

Core Development: Joint Venture Fully Suspended

Jiangling Ford Automotive Technology (Shanghai) was established in December 2021 as a joint venture between Jiangling Motors (holding 51%) and Ford Motor Company (holding 49%), with a registered capital of RMB 2.678 billion. Jiangling Motors recently disclosed that the company ceased operations in Q3 2025 and recorded significant asset impairment charges.

Key Figures: Impairments Drag Profits by Over RMB 8 Billion

In Q3 2025, the reversal of deferred tax assets impacted profits by approximately RMB 5.8 billion; in Q4, impairment provisions for VAT input credits and operating assets totaled RMB 3.1 billion, resulting in a combined annual impact on profits of nearly RMB 9 billion.

Strategic Context: Joint Venture Model Falters Amid Market Shifts

Amid the rise of domestic new energy vehicles, traditional joint ventures continue to face mounting pressure. Jiangling Ford Technology, a product of Ford China's "Ford China 2.0" strategy, failed to reverse its declining trajectory and has ultimately exited the market.