Ford and partners to build US$500 million engine plant in China

October 1, 2010

Ford has announced plans to build a US$ 500 million (RMB 3.4 billion) state-of-the-art engine plant in Chongqing, China. Ford’s joint venture, Changan Ford Mazda Automobile Ltd (CFMA) recently signed a Memorandum of Understanding with the Chongqing Municipal Government to build the new plant in Chongqing’s New North Zone.

CFMA is a three-way joint venture among Changan Motors, Ford Motor Company and Mazda Motor Company. Construction of the new plant is planned to begin in 2011, with engine production starting in 2013. With the additional capacity of 400,000 units at the new plant, CFMA is more than doubling its existing engine capacity of 350,000, to 750,000 engines annually.

“This new engine plant will help power our ambitious expansion plans here in the world’s largest automotive market,” said Joe Hinrichs, Ford’s president, Asia Pacific and Africa “We are working hard to expand sales and production here, and to offer more of the great vehicles from our global portfolio here in China and throughout the region. The growth potential in this part of the world in the next ten years is astounding.”



Third vehicle assembly plant

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

“This investment will significantly expand our manufacturing capabilities and product offering in China,” said Robert Graziano, chairman and CEO, Ford Motor China. “We have big plans for China. As part of our ‘Better Plan’ for China, we will continue to expand vehicle and engine production, grow our dealer network, and grow our team of local talents.”

After several years of considerable growth, CFMA has established itself as one of the leading passenger car manufacturers in China. CFMA is well known in China for its high quality cars, as well as its efforts to develop and introduce environmentally-friendly technologies.

Jiangling Motors

Ford Motor Company’s other partner in China, Jiangling Motors Corporation in Nanchang, produces commercial vehicles, including the Ford Transit, one of the best sellers in China’s high-end light bus segment. Jiangling Motors recently began work on a new commercial vehicle plant with an investment of US$ 300 million in July 2010.

www.ford.com

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