Ford said on Wednesday that it could boost the annual production capacity of its car factory in central China from 50,000 units currently to 150,000 units if necessary, according to Dow Jones Newswires.
Spokesman Kenneth Hsu told the news agency there was enough room at the Chongqing facility in Sichuan province to support that level of production, but additional equipment would have to be brought in.
Dow Jones said Hsu declined to comment on when capacity at the facility, which started making Fiesta and Mondeo cars this year, would be boosted to that level.
“Capacity will grow as market demand grows,” he reportedly said.
Hsu told Dow Jones Ford has forecast the plant will make 20,000 Fiestas and 4,000 Mondeos this year but declined to give production forecasts for next year, though he said the figures would be disclosed soon.
Analysts told Dow Jones international car makers have been struggling to meet demand without risking over-capacity as China’s car sales jumped 73% year on year in the first eight months.
The biggest question for them, one automobile consultant told the news agency, is how fast to increase capacity.
Japanese, Korean, American, and European car makers have all been ramping up production and announcing massive production forecasts, which have raised concerns of over-capacity in China, Dow Jones Newswires noted.