Ford's new engine plant will help support the rapid growth of its Chinese product line-up, which now includes models like this Mondeo.
Changan Ford Mazda Automobile, Ford Motor Company’s passenger car joint venture in China, has launched construction of a new, state-of-the-art engine plant in Chongqing. The $500 million investment will more than double CFMA’s annual engine production capacity in China to 750,000 units when it comes on line in 2013.
Along with a variety of other moves, including plans to add a second assembly plant to support the addition of 15 new products, Ford is working hard to establish itself in China. The maker was initially reluctant to enter what has now become the world’s largest automotive market – and is paying a price for that delay. Ford currently holds less than a 3% share of the Chinese market while that country’s top maker, General Motors, has a 15% share.
“Today’s ground-breaking ceremony represents yet another milestone in Ford’s accelerated expansion plan for China. This plan reinforces our commitment to aggressively grow the Ford brand in China and offer a full range of exciting, fuel-efficient vehicles to Chinese customers,” said Joe Hinrichs, president of Ford Asia Pacific and Africa.
Hinrichs said the new engine plant represents one of several new investments that Ford has made to support its aggressive expansion plan in China. Last July, Ford’s commercial vehicle partner in China, Jiangling Motors Corporation (JMC), broke ground for a new $300 million vehicle assembly plant in Nanchang.
JMC produces the Ford Transit, a leader in China’s light bus segment. Ford will bring 15 new vehicles to China by 2015, double the six it currently has. These products are aimed at strengthening Ford’s position in existing segments while driving new growth in others. (Click Here for more details.)
In addition, Ford signed an MOU in May to build its first transmission plant in the country, also in Chongqing, with an initial annual capacity of up to 400,000 units.
Early next year, Ford’s second passenger-car assembly plant in Chongqing will begin production, starting with the new Ford Focus. Ford also planning to building the next generation Kuga in China.
Ford also plans to double the number of employees and dealership outlets it has in China by mid-decade. Ford currently has 340 dealerships in China.
Ford officials also have said the efforts to build the brand in China, as well as elsewhere in Asia Pacific, will not be affected by any changes in the company’s partnership with Mazda, which is increasingly plotting a course independent of Ford.
President and CEO Alan Mulally said Ford expects worldwide sales to increase by approximately 50 percent by mid-decade to about 8 million vehicles a year – with improved operating margins – as the company continues its One Ford plan to accelerate product introductions and expand quickly in growth markets such as China.
“Ford is a growing company operating in a growing global automotive market,” Mulally told analysts last week.