Ford OK'd to split China venture with Mazda

Ford Motor Co has received approval from China's top economic planning agency to split its venture in China with Mazda Motor Corp, paving the way for the US automaker to increase control of its expansion in the country.

The National Development and Reform Commission approved an application for Ford to have a separate venture with Chang'an Automobile Co instead of the current three-way ownership structure with Mazda, Ford Chief Executive Officer Alan Mulally told reporters in Chongqing on Monday. The plan still needs to be approved by two ministries, Ford said in a statement.

The separation would restore Ford's ability to have an equal say as its Chinese partner for the first time since 2006, when the US company transferred a 15 percent stake to then-affiliate Mazda. The Dearborn, Michigan-based automaker has sought to break up the China venture after selling down its stake in Mazda in 2008 to raise cash.

China Daily - Agencies