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Ford China to more than double engine production with $500M investment in second plant in Chongqing

Ford Motor Company’s passenger car joint venture in China, Changan Ford Mazda Automobile (CFMA), broke ground for a new engine plant in Chongqing. The US$500-million investment will more than double CFMA’s annual engine production capacity in China to 750,000 units when it comes online in 2013.

These engines will equip Ford-brand vehicles manufactured and sold in the country.

The engine plant is sited in Chongqing’s Liangjiang New Area—the only national-level development zone located in western China.

The new engine plant represents one of several new investments that Ford has made to support an aggressive expansion plan in China. Last July, Ford’s commercial vehicle partner in China, Jiangling Motors Corporation (JMC), broke ground for a new US$300-million vehicle assembly plant in Nanchang. JMC produces the Ford Transit, a leader in China’s light bus segment.

In April of this year, Ford announced that it will bring 15 new vehicles to China by 2015. These products will strengthen Ford’s position in existing segments while driving new growth in others. In addition, Ford signed an MOU in May to build its first transmission plant in the country, also in Chongqing, with an initial annual capacity of up to 400,000 units. Early next year, Ford’s second passenger-car assembly plant in Chongqing will begin production, starting with the new Ford Focus.

Ford plans to double the number of employees and dealership outlets it has in China by mid-decade.



Wise investment to profit from future market place. Ford should also add Brazil and India in their expansion or re-direction of manufacturing facilities as those two countries will become major buyers (no. 4 and 5) by 2020 and probably no. 2 and 4 by 2030.

The world is changing fast. Some economies are going up while others are going down.

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