Ford’s China joint venture, Changan Ford Mazda Automobile on Monday officially launched operations at its new manufacturing facility in Nanjing, where it will produce the small cars for both the Ford and Mazda brands.
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The $US510m flexible and ‘scaleable’ facility has an initial capacity of 160,000 vehicles per year, boosting the automaker’s total annual passenger car capacity in China to more than 410,000 vehicles.
During a formal ceremony in Nanjing, Ford Motor president & CEO, Alan Mulally, Mazda president & CEO, Hisakazu Imaki and China South Industry Group president Xu Bin joined local government officials to inaugurate the new plant.
While in China for the plant opening, Mulally told Automotive News that Ford may export cars from the plant.
“Export is a possibility,” he was quoted as saying. “It’s all about competitiveness.”
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By GlobalDataThe report said Mulally spoke to reporters in Ford’s new wholly owned research and engineering centre due to open in late October.
“We will use our research and engineering and manufacturing in China for worldwide operations,” Mulally told Automotive News. “The real competitors going forward will be the ones who leverage their assets around the world.”
Honda Motor already assembles left-hand drive Fit/Jazz models in China and exports some to LHD markets in Europe while Chery Automobile is expected to start assembling a small car line for Chrysler’s Dodge brand in mid-2009 – this car is expected to be sold both in North America and worldwide as Chrysler continues to boost Dodge sales overseas.
“Integrating, leveraging and growing Ford worldwide is one of our top priorities, and our China strategy is certainly a key component to making this happen. This new state-of-the-art facility will significantly increase our capacity in China, and allow us to continue our rapid growth in the market,” Mulally said.
“Working together with our JV partners at Changan Ford Mazda Automobile and Changan Ford Mazda Engine (CFME), we’ll continue to build and introduce the types of vehicle that Chinese customers really want, and are demanding,” he added.
Ford, a relative latecomer to China, said CFMA was well known in China for its high quality cars, and after several years of considerable expansion, made the list if the country’s top 10 passenger car makers in April. The brand recently has been one of the fastest growing brands in China, recording a respectable 87% increase in sales between 2005 and 2006, and a further 29% increase in the first eight months of this year, with total retail sales of 114,702 vehicles.
Models such as its European D-segment Mondeo are modified with more rear seat legroom and additional comfort and convenience features, reflecting the fact that many buyers of such cars employ a driver.
Ford said the inauguration of the Nanjing plant will allow CFMA to offer a more diverse range of products for different market segments – including small cars, mid-sized and full-sized sedans. CFMA’s first vehicle assembly plant in Chongqing currently produces the Ford Europe-designed Focus, Mondeo and S-Max minivan, plus Volvo’s S40 and Mazda’s 3 (which share the Focus’ platform) and has an annual capacity of 250,000 vehicles.
Up to eight models with different chassis can be simultaneously produced on the Nanjing plant’s flexible production lines, maximising production speed and efficiency, Ford said.
All 45 critical components are manufactured in-house, ensuring high-quality and precision measurements for the car body. The plant also has the most advanced torque monitoring and logistics delivery systems currently available in China, making it one of the country’s most modern car manufacturing facilities.
An advanced 3C1B (3-coat, 1-bake) environmentally-friendly paint process is also being used for the first time in China. European standards-compliant, it reduces CO2 emissions by 15% and particulate (VOC) emissions by 44%.
Ford claims the process, which can reduce equipment and production cost, is currently the most environmentally-friendly surface-paint coating technique employed in China. It uses internationally advanced processes known as electrophoresis groove and reverse-flow water circulation methods, which can eliminate close to 100% of the particles.
