Ford is today breaking ground on a new JV plant in China which it says will double its production capacity in China to 1.2m passenger cars annually by 2015.
Ford and its joint venture Changan Ford Mazda Automobile (CFMA) will invest US$760m in the new plant at Hangzhou.
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“Here in Hangzhou, we are laying the foundation for the future of Ford globally,” said Alan Mulally, president and CEO, Ford Motor Company, at the event. “At Ford, our goal is to offer fuel-efficient, high-quality vehicles from our global portfolio that customers in markets like China want and value. This state-of-the-art facility will help us reach the goal of increasing worldwide sales nearly 50 percent by mid-decade to 8 million vehicles per year.”
Ford said that the Hangzhou plant is part of Ford’s ‘aggressive expansion in Asia Pacific and Africa’, with nine new plants (seven under construction) planned.
The first vehicle will come off the line in Hangzhou in 2015. Ford said that the new plant further diversifies Ford’s manufacturing footprint in China while giving the company better access to the large customer base in China’s affluent coastal areas.
“Today is another major milestone for Ford in China, and reinforces our commitment to aggressively grow the Ford brand in one of the most vibrant auto markets in the world,” said Dave Schoch, chairman and CEO, Ford Motor China. “This new plant is an important part of our aggressive plan to bring 15 new vehicles and 20 new powertrains to China by 2015, giving customers here even more choice in Ford’s next generation of high-quality, fuel-efficient, fun-to-drive vehicles.”
The Hangzhou plant will further complement Ford’s existing manufacturing base in China. In February, CFMA opened its second assembly plant in Chongqing, which houses a fully integrated facility including stamping, body assembly, paint, trim and final assembly operations.
The company has also just broken ground on another new assembly plant in Chongqing, where a new engine plant as well as a transmission plant are also under construction, making Chongqing the largest manufacturing location for Ford outside southeast Michigan. The joint venture with CFMA also has an assembly and an engine plant in Nanjing, China.
