Ford chief Alan Mulally has said the company will add 7,000 jobs in the US over the next two years.

He did not say where the jobs would be created and declined to comment on the progress of negotiations over new labour contract with the United Auto Workers. Reports have indicated a deal could be reached this week.

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Mulally said that Ford would not be slowing its expansion in Asia, despite slower economic growth in China and India. Ford is keeping a close watch on capacity in China and expects significant growth in the Indian market.

Asked if he was worried about a double-dip recession in the US, Mulally said he expected the economy to continue to expand.

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