February 7,,BEIJING (AFX) - Japan's Isuzu Motors Ltd will withdraw from Jiangling Motors Corp Ltd (SZA 000550; SZB 200550), its joint venture with Ford Motor Co (NYSE: F - news) and China's Jiangling Motors Co Group, the Economic Observer reported.

Citing unidentified sources, the newspaper said Isuzu Motors, which holds a 12.5 pct stake, pulled-out because Chongqing Changan Automobile Co Ltd (SZA 000625; SZB 200625), which is a major indirect stakeholder in Jiangling Motors Corp, controls the listed venture and intends to focus on vans in the future.

Jiangling Motors Corp now mainly produces Ford Transit vans, Isuzu light trucks and pickups, and the newspaper said that Isuzu Motors may not intend to expand its van-making operations.

Chongqing Changan Automobile and its parent Changan Automotive Group recently set up a 50-50 joint venture with Jiangling Motors Co Group, called Jiangxi Jiangling Holding Co.

The joint venture holds a 41.03 pct stake in Jiangling Motors Corp, and Ford 30 pct, granting Changan Automotive Group and Ford a combined 71 pct stake.

The newspaper said Changan Automotive Group wants to boost its market share in China to 15 pct, on a production capacity of 600,000 units in 2007, up from 10 pct currently.

Changan group sold 579,500 units in 2004, ranking third after First Automotive Works (FAW) Group Corp and Shanghai Automotive Industry Corp (SAIC).

Ford has a 50-50 passenger car joint venture with Changan Automobile.
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