There’s no denying that the Chinese car market is a top priority for the entire automotive industry, which explains the huge investments made by all companies.
In an attempt to improve its position in the market and catch up with rival carmakers General Motors and the Volkswagen Group, Ford Motor Co. announced on Thursday that together with its joint venture Changan Ford Mazda Automobile (CFMA), it is investing $760 million (€578 million) to build a new factory in in Hangzhou, eastern China.
The new assembly plant will help Ford double its production capacity in China to 1.2 million passenger cars annually by 2015.
“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,” said Joe Hinrichs, president of Ford Asia Pacific and Africa. “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.”
The announcement on the new plant in Hangzhou 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 automaker opened Chongqing 2 that builds the New Focus, which increased its China passenger car capacity by one-third to 600,000 units.
Since 2006, Ford has invested some US $4.9 billion in China.
“The Chinese auto market remains one of the most vibrant in the world,” commented Dave Schoch, chairman and CEO of Ford China. “This expansion will allow Ford to deliver on our aggressive plan to bring 15 new vehicles and 20 new powertrains to China by 2015, giving Chinese consumers more choice in Ford’s next-generation of high quality, fuel efficient, fun-to-drive vehicles.”
PHOTO GALLERY
