The Changan Ford Mazda Automobile joint venture is to build a second engine plant in China.

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CFMA is spending US$500m on the new plant in Chongqing. Joe Hinrichs, president of Ford’s Asia Pacific and African operations, said the move was part of the company’s ambitious plans for China.

He added: “We are working hard to expand sales and production here and throughout the region. The growth potential in this part of the world in the next 10 years is astounding.”

Construction of the new plant is planned to begin next year, with engine production starting in 2013. The additional capacity of 400,000 units will more than double Ford’s engine output to 750,000 a year.

CFMA currently has two vehicle assembly plants, in Chongqing and Nanjing. Last September, CFMA broke ground in Chongqing for its third vehicle plant, which will start producing the Focus in 2012.

Ford’s other partner in China, Jiangling Motors Corporation in Nanchang, produces commercial vehicles, including the Transit. JMC broke ground for a new vehicle plant costing US$300m last July.

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