Jiangling Motors (JMC), which is 30% owned by Ford Motor, has agreed to acquire Taiyuan Changan Heavy Truck Company.
As part of the deal, JMC will pay cash for the 80% stake currently held by China Changan Automobile and the remaining 20% held by China South Industries.
The companies did not disclose the value of the deal, which requires approvals from Chinese authorities.
Ford Motor China chairman and CEO Dave Schoch said, "A strong heavy truck operation like Taiyuan will complement Ford's existing passenger car and light commercial vehicle operations here in the world's largest and fastest-growing vehicle market."
The company said that it aims to introduce 15 new vehicles and 20 advanced powertrains in China by 2015.
Ford and its partners are building five new plants in China which includes a new $300m manufacturing facility in Nanchang where JMC is based.
The facility will be capable of producing 300,000 JMC and Ford-branded vehicles per year.