Ford Motor Co. is reportedly in talks with partnering firm Changan Automobile Group for a manufacturing agreement in Chongqing as it eyes to make China its top market for its luxury line, Lincoln, according to Bloomberg.
People with knowledge of the matter revealed that Ford is eyeing to set a manufacturing footprint in the southwestern Chinese city and make it its Asian export base.
The involved persons said that output could commence as soon as 2018 should the luxury line continue to grow strong in China, where it kicked off with a fast start in 2015.
Nonetheless, another person familiar with the partnership said there are still no final details as to how profit-sharing will be, adding that the project could still not commence until 2020 or later.
Zhu Huarong, president of Chongqing Changan Automobile Co., shared the same seniment, saying that "there's [still] no detailed plan at the moment."
Ford said through an emailed statement that "Lincoln is selling imported vehicles in China and has nothing to announce regarding legalized production."
Meanwhile, Ford CEO Mark Fields predicted that China could get ahead of the United States as Lincoln's largest market until 2020.
Lincoln head Kumar Galhotra noted of China's advantage over the Western nation.
"It's different in the U.S. than in China," Galhotra said. "In China, our heritage plays very strong. Our favorable opinion in China is actually ahead of Lexus and on the factor of prestige, we're actually ahead of Audi."
During the luxury line's pilot year in China, it was able to sell over 11,000 vehicles, which, according to Fields, is the most outstanding performance for a high-end auto brand in the country.
Manufacturing in China would be beneficial to Ford, allowing the firm to save 25 percent on import tax. Should it continue this project, the brand will join the ranks of General Motors Co.'s Cadillac and Nissan Motor Co.'s Infiniti as luxury lines that are made in China.
The said Ford brand is reportedly investing around $2.5 billion to enhance the said luxury line. Apart from Lincoln, Ford is also selling four import models in the country, including the MKZ sedan and the Navigator sports utility vehicle, which is the most expensive Lincoln model in China.
A redesigned Navigator, whose price starts at 988,800 yuan, is set to arrive in showrooms in 2017. According to the firm, it eyes to open more Lincoln stores in China, from 40 in March to 60 by the end of this year.