Relationships come and go, and performance fluctuates. This is the basic law of the industry. In 2025, the automotive industry is experiencing the most intense competition in the past decade, with integration, elimination, and systemic change as the main themes. Previously, the two major automobile central enterprises, Dongfeng and Changan, have begun to operate separately to further strengthen their ties. Recently, there have been rumors of a merger between Jiangling Ford and Changan Ford; almost at the same time, the Renault-Nissan Alliance is about to enter a new alliance stage due to changes in personnel and capital.
Rumors of the merger of the two Fords were debunked
Event Overview : Recently, a piece of news that "Jiangling Ford will be merged into Changan Ford" has attracted attention in the automotive industry. On June 18, Jiangling Motors quickly issued a statement to deny it, saying that there is no plan for asset restructuring and integration at present.
Comment : Although the rumor was officially denied, this incident reflects the challenges faced by Ford's joint ventures in China and the development trend of the automotive industry under the current competitive landscape.
Jiangling Ford and Changan Ford, as two major joint ventures of Ford Motor Company in China, have played different roles in the market for many years. Changan Ford was established in 2001 and has been deeply involved in the sedan and SUV market for a long time. Its models such as Mondeo and Edge have become popular choices in the family car market with their excellent performance and comfortable driving experience. Jiangling Ford's cooperation with Ford is even earlier, dating back to 1995. In the early days, it mainly produced the Transit series of commercial vehicles. After the establishment of the joint venture in 2021, it began to focus on the SUV and pickup fields, launching hard-core models such as Everest and Ranger to meet the needs of off-road enthusiasts and commercial cargo.
However, in recent years, both joint venture brands have faced the dilemma of declining sales in the Chinese market. Changan Ford's sales in 2024 were 247,000 vehicles, but in the first five months of 2025, they fell 16.43% year-on-year. Jiangling Ford's passenger car sales have declined for three consecutive years, reaching only 35,000 vehicles in 2024. Ford's overall sales in China have also fluctuated. After declining from its peak in 2016, it rebounded in 2020-2021, but fell into a sales trough again in 2022-2023. Problems on the product side are considered to be one of the main reasons for the decline in sales. Ford has gradually fallen behind its competitors in the launch of new products and the renewal of product lines, and has failed to keep up with the rapidly changing market needs.
In this context, the emergence of merger rumors is not groundless. From an industry perspective, competition in the automobile market is becoming increasingly fierce, and the rise of new energy vehicles has accelerated the reshuffle of the industry. In order to cope with competition, integration and cooperation between automakers have become a trend. For example, the merger of Changan Mazda and FAW Mazda achieved cost reduction and efficiency improvement through resource integration. For Ford, if Jiangling Ford merges with Changan Ford, it can theoretically improve product layout, avoid duplication of investment, and concentrate resources on R&D, production and marketing. In terms of channels, the integrated sales network is also expected to improve operational efficiency and better serve consumers.
However, Jiangling Motors explicitly denied the rumor and said that it has been working with joint venture partners and dealers to build a healthy sales and service network and improve operational efficiency and synergy. This shows that Jiangling Ford and Changan Ford are still seeking development on their respective tracks and improving their competitiveness by optimizing internal operations and cooperation. The strategic adjustment of the Chinese market proposed by Ford Global CEO Jim Farley in 2025, focusing on commercial vehicles, electric vehicles and export businesses, reducing investment in non-core areas, also pointed out the direction for the future development of the two joint ventures.
Although the rumor that Jiangling Ford will be "merged into" Changan Ford has been debunked, it is a microcosm of the automotive industry: in a rapidly changing market environment, it is better to stick together for warmth and there is no need to be shy.
Renault CEO resigns as ally Nissan reduces stake
Event overview : In June 2025, Nissan Motor announced plans to reduce its stake in Renault Group; two days earlier, Renault CEO Luca de Meo announced his resignation and switched to the luxury goods industry.
Comment : These two seemingly independent events actually reveal the systematic changes that the global automotive industry alliance model, including the Renault-Nissan Alliance, is undergoing. Under the impact of the wave of electrification and intelligence, traditional capital-bound alliances are giving way to more flexible strategic collaboration.
Nissan's decision to reduce its stake in Renault by 5% is a re-examination of the alliance relationship that has lasted for more than 20 years. Since the establishment of the Renault-Nissan Alliance in 1999, the cross-shareholding structure has always been the cornerstone of the cooperation between the two parties. However, this capital bond has encountered severe challenges in recent years: in 2023, the two parties reduced their cross-shareholding ratio from 43.4% to 15% for the first time, and further reduced it to the bottom line of 10% in March 2025. This time, Nissan plans to reduce its shareholding ratio to below 10%, marking that the alliance has officially entered a new stage of "low binding, high autonomy".
Ivan Espinosa, the new CEO of Nissan, said that the proceeds from the reduction will be mainly used for new car development, which is highly consistent with the "Re: Nissan" revival plan he is promoting - the plan requires achieving positive operating profits by fiscal 2026, cutting costs by 500 billion yen and laying off 20,000 employees. During the critical period of electrification transformation, Nissan urgently needs to release financial resources constrained by capital relations to cope with the dual pressures brought by the rise of Chinese automakers and US tariff policies.
As for Renault, de Meo's departure casts a shadow on the continuity of the company's strategy. The head who led Renault to turn losses into profits during his five years in office promoted the sales of electric models in Europe to 33% through the "Renaulution Revival Plan" and reconstructed the alliance with Nissan. His sudden switch to Kering Group, on the surface, is a breakthrough in his personal career trajectory, but in fact it reflects the transformation dilemma faced by executives in the automotive industry. Under the dual pressures of accelerated iteration of electrification technology and the globalization of Chinese auto companies, leaders of traditional auto companies need to deal with the tearing of manufacturing genes and technological thinking at the same time. Renault's stock price plummeted 8% on the day the news was announced. It is not difficult to find that the market has concerns about the stability of the alliance and the continuity of the electrification strategy.
Combining these two events, capital ties are no longer enough to become a "fetter" between alliances. From the historical cases of Ford and Mazda, GM and Toyota, when the evolution trend of industrial technology undergoes a fundamental change, equity alliances often become a hindrance to transformation. After Nissan reduced its stake in Renault, although both parties maintained a minimum shareholding ratio of 10%, they have clearly shifted their cooperation to substantive areas such as technology sharing and production capacity synergy.
Secondly, alliance governance is shifting from "equity parity" to "capability complementarity". Renault's accumulation in the field of electrification and Nissan's breakthrough in hybrid technology have created conditions for modular cooperation between the two parties on specific projects. This shift has already emerged in Renault's cooperation with Chinese companies such as Geely and Dongfeng. Its R&D center in China is leading the development of the next generation of pure electric vehicles.
As the electrification transformation enters the deep water zone, traditional automakers are facing the double pressure of "high R&D costs" and "reconstruction of profit model". The 100 billion yen obtained from Nissan's share reduction will be mainly used for the development of electrified models and investment in autonomous driving technology, which echoes its "In China, for China, to the world" strategy launched in the Chinese market. Renault needs to balance electrification investment and alliance relationship maintenance after the CEO leaves office. The new CEO must not only deal with the squeeze on Chinese automakers' market share in Europe, but also avoid the fluctuation of the capital chain caused by Nissan's share reduction.
At present, the alliance model and joint venture partners of the automotive industry are undergoing a transformation from "formal bundling" to "substantial cooperation". The entire industry is exploring more resilient survival rules under the wave of electrification and intelligence.
