Ford China to build US$760M assembly plant in Hangzhou; doubles current China passenger car capacity to 1.2M units annually by 2015
Ford will invest US$760 million to build a new assembly plant in Hangzhou, China with its joint venture Changan Ford Mazda Automobile (CFMA), adding initial capacity of 250,000 units. When Hangzhou opens in 2015, Ford’s total passenger car capacity in China will increase to 1.2 million units annually, doubling current output.
The Hangzhou plant announcement comes two weeks after Ford said it will invest US $600 million to expand capacity at its Chongqing facilities by 350,000 passenger cars, and less than six weeks after the company opened Chongqing 2, the home of the New Focus, which increased its China passenger car capacity by one-third to 600,000 units.
The Hangzhou investment will bring Ford’s total investment in China since 2006 to US$4.9 billion.
So far, Ford’s investments in China and across Asia represent its largest and most rapid global expansion in fifty years. This expansion will help us realize an increase in global sales by about 50 percent from 2010 to about 8 million vehicles annually by mid-decade. Building this plant helps lay the foundation for that growth and reconfirms our commitment to China, which is expected to have sales of about 30 million vehicles by 2020.—Joe Hinrichs, president of Ford Asia Pacific and Africa
Construction of the new plant in Hangzhou will begin later this year, with the first vehicle coming off the line in 2015.
In addition to the recently announced capacity expansion project in Chongqing, CFMA already operates two assembly plants in Chongqing, with a new engine plant as well as a transmission plant currently under construction, making Chongqing the largest manufacturing location for Ford outside southeast Michigan. The joint venture also has an assembly and an engine plant in Nanjing, China.
Ford will unveil four new global vehicles at the upcoming Auto China 2012 in Beijing.