Ford to Build New Plant in China

Taking advantage of the economic boom in China, as well as of the increased appeal of the local consumers for American vehicles, car manufacturer Ford announced today its decision to begin the build on its second facility in the country.

The new engine plant, Ford's second in China, will be built by the carmaker's local join venture, Changan Ford Mazda Automobile (CFMA) in collaboration with the Chongqing Municipal Government.

The facility will be erected in Chongqing, using the $500 million (RMB 3.4 billion) provided by CFMA. The plant will be located in Chongqing's New North Zone and will become operational in 2013.

Currently, Ford manufactures 350,000 engines annually in China. The extra 400,000 units which will come off the lines of the facility will more than double that capacity.

"This new engine plant will help power our ambitious expansion plans here in the world's largest automotive market," said Joe Hinrichs, Ford Asia Pacific and Africa president

“We are working hard to expand sales and production here, and to offer more of the great vehicles from our global portfolio here in China and throughout the region. The growth potential in this part of the world in the next ten years is astounding."

CFMA now has two vehicle assembly plants, one in Chongqing and the second in Nanjing. In September 2009, CFMA began construction in Chongqing of the third vehicle assembly plant, which will start producing the Ford Focus in 2012.

Ford's second joint venture in China, the one with Jiangling Motors Corporation also announced it has begun construction of a new plant in China.