Jiangling Motors to boost capital in subsidiary, strengthen Ford partnership

Jiangling Motors (JMC) plans to increase capital in its controlled subsidiary, Jiangling Ford Automotive Technology (Shanghai) Co., Ltd., alongside Ford Motor Company. JMC will contribute RMB 1,263.78 million via debt-to-equity conversion, while Ford will contribute RMB 1,214.22 million in cash, maintaining JMC's 51% ownership. The funds are primarily for repaying the subsidiary's liabilities, with a total registered capital of RMB 2,678 million after the increase.

Concurrently, JMC, its wholly-owned subsidiary Jiangling Motors Sales Co., Ltd., and Ford Automotive Marketing Services (Shanghai) Co., Ltd. (FAMS) signed a comprehensive distribution service agreement. FAMS, a wholly-owned subsidiary of Ford, will provide full distribution services for JMC-produced Ford brand passenger vehicles and pickups in China. Ford, as JMC's second-largest shareholder with 32% equity, makes these transactions connected.

The transactions aim to upgrade Ford's dealer network managed by Jiangling Ford Shanghai, unify marketing and channel management, and enhance sales of JMC's Ford-branded vehicles. These arrangements are not expected to impact JMC's total profit. The board of directors has approved these resolutions, which await approval from the general meeting of shareholders.