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Ford, Mazda and Changan in JV for Fuel-Efficient Engines in China

Changan Automotive Group, Ford Motor Company, and Mazda Motor are entering a joint venture for a new engine plant at Nanjing, in eastern China. The new engine plant, scheduled to be operational by early 2007, will supply two families of fuel-efficient engines to assembly facilities in China.

Both engines will implement state-of-the-art technologies and will, according to the partners, be among the top level of engines worldwide, achieving high horsepower and good fuel efficiency at the same time. They will exceed all Chinese government regulations, which are more stringent than current regulations in the US. (Earlier post.)

The new engine project, named Changan Ford Mazda Engine Company, will be owned and operated by a joint venture to be established among Changan, Ford and Mazda.

The engine facility will have a capacity of 350,000 engines annually, and is designed to support future expansion and the longer term growth plans for all three companies.

This engine plant in Nanjing is part of the $1 billion-plus investment together with partners that Ford Motor Chairman and CEO Bill Ford announced during his visit to China in October 2003. This investment plan is also the basis of Ford and Changan’s strategic partnership.

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