On Apr. 18, Chongqing Changan Automobile Co. Ltd., the Chinese partner of Ford Motor Co., said net profit fell 82.03% to RMB 236.75 million in 2005 due to lower automobile prices and the rising costs of raw materials.

Changan, China's fourth-largest vehicle maker, said sales rose 3.46% to RMB 19.17 billion for the year of 2005, the company said in a statement filed with the Shanghai Stock Exchange. It sold 474,625 vehicles last year, 4.48% more than 2005.

Although its sales rose 3.46% to RMB 19.17 billion for the year of 2005, the company stated that increased competition in the auto industry downsized its profit margins, while prices of raw materials such as steel and oil have been rising over the past year.

The company also stated that it will continue to focus on the production of mini-passenger vehicles and mini vans this year.