Changan Ford Motor plans to arrange a new-energy passenger automotive three way partnership with state-owned Chongqing Changan Car, a doc revealed by China’s market regulator on Friday confirmed.

Changan Ford Motor will personal a 60 perce t stake and Chongqing Changan Car the remaining 40 % stake. Changan Ford is a 50-50 three way partnership between Ford Motor Co. and Changan Car, that means Chongqing Changan will personal greater than 50 % of the brand new enterprise.

Sooner or later, the three way partnership plans to interact within the “provide enterprise of mainstream model new vitality passenger autos and the distribution enterprise of Ford model fashions that Changan Ford has invested in,” the assertion stated. Ford stated in a later assertion the brand new enterprise additionally will promote current Ford-brand gas-powered autos.

Ford stated the enterprise was being shaped “to raised grasp the event development of electrification and intelligence within the auto business.”

Requested whether or not this new enterprise means Ford is minimizing its publicity in China, spokesman Anderson Chan stated it was aligned with CEO Jim Farley’s technique that features leaning into the power of the corporate’s companions in China. The corporate stated it will present additional particulars later.

Farley stated final month through the firm’s earnings convention name that the U.S. automaker could have to make use of its native companions’ automobile platforms extra “in sure segments,” excluding pickups and huge SUVs.

Changan officers couldn’t be reached for additional remark.

Gross sales of Ford with Changan fell 12.6 % within the first half type the year-ago interval, China Affiliation of Car Producers information confirmed.

Greater than 40 manufacturers have minimize costs in China since January after an preliminary transfer by Tesla in a combat for market share on the earth’s greatest auto market, as automotive demand slumps, with ripples spreading via the broader business.