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Ford to build its first transmission plant in China

19 May 2011

Ford, together with its partners in China, is building its first transmission plant in China. Ford’s passenger vehicle joint venture in China, Changan Ford Mazda Automobile Ltd. (CFMA) signed a Memorandum of Understanding for the transmission plant project with the Chongqing Municipal Government. The plant, with an initial investment of US$350 million to be entirely funded by CFMA, will produce advanced fuel-efficient 6-speed automatic transmissions with an initial annual capacity of up to 400,000 units, supplying Ford brand vehicles produced and sold locally by CFMA.

The transmission plant, to be located in Chongqing's New North Zone, is scheduled to break ground this July and start production in the fourth quarter of 2013.

As CFMA’s first transmission plant in China, this project will greatly expand our manufacturing footprint and technical capabilities in China, enabling us to provide an increased level of high-quality, and fuel-efficient vehicles with smart technologies to the Chinese consumers.

—Marin Burela, president of CFMA

CFMA manufactures Ford Mondeo, Ford Focus, Ford Fiesta and Ford S-MAX.

This new transmission plant represents the latest in a series of investments previously announced by Ford and its partners in China.

  • A Memorandum of Understanding was signed between Changan Ford Mazda Automobile Ltd (CFMA) and Chongqing Municipal Government in September 2010 for a new engine plant with a total investment of US$500 million. It will start construction later this year and is scheduled to begin production in 2013 with an initial annual capacity of 400,000 units.

  • On 18 July 2010, Ford Motor China’s strategic commercial vehicle investment Jiangling Motors Corp (JMC) broke ground for a new US$300-million assembly plant in Nanchang, Jiangxi Province.

  • In September 2009, Ford announced a US$490-million investment for a new passenger car plant in Chongqing with initial annual capacity of 150,000 units. It will boost total annual production capacity at CFMA to around 600,000 units by 2012 to help meet increasing demand for Ford brand vehicles in China. The passenger car plant will begin manufacturing Ford’s next-generation Ford Focus in 2012.

May 19, 2011 in Brief | Permalink | Comments (3) | TrackBack (0)

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Comments

This is a wise move to install more production facilities closer to the world largest car market. This may become even more indispensable for future competitive electrified vehicles production. India could be next on the list.

China has the money to invest in manufacturing. I think they understand the value added nature of that investment. Maybe we need to evaluate that as well.

Okay, Ford! Prepare to have all your ideas stolen!

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