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U.S. Automakers Plan To Increase Production In China and India Next Year

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On: Tue, Nov 30, 2010 at 3:15PM | By: Sherry Christiansen

U.S. Automakers Plan To Increase Production In China and India Next Year

Ford Motor Company plans to open 66 new dealerships in China by the end of 2010, raising the total number of new overseas dealerships this year to 100 and total outlets to 340. The newer dealerships are located primarily in the fast growing cities located in western and northern China, including Liyang, Shijiazhung, Harbin, Wanzhou, and Anyang.

Many of these cities, relatively unknown outside of China, have populations well over a million people and will help lead the next wave of growth in the Chinese economy.

"Following the call to 'go west,' we are expanding west and in developing cities in China where most of the future growth will come from," said Ford China chief Joe Hinrichs. "We are on track to have a record sales year in China. We will also have a record year for sales in the Asia Pacific and Africa region as a whole."

Ford and its joint venture Changan Ford Mazda Automotive Ltd. (CFMA) are building a new assembly plant in Chongqing, and just signed an agreement to build a new engine plant, also in Chongqing. Ford is introducing the Edge SUV to China in mid-December. Ford has invested $500 million in India this year with plans to increase production by 50% capacity to started selling a new small car overseas.

The reason Ford decided to expand in China, (and India), is due to huge economic growth and rising levels of disposable income in the two countries. The Detroit automaker projects that as much as 70% of its growth in the next 10 years to come from its Asia Pacific and Africa region.

Ford’s China sales rose an incremental 30% to over 460,000 vehicles, while India passenger sales rose 38%, according to a recent financial report released by the company. A spokesperson for Ford stated that the company expects record high sales next year in China, as well as the Asia/Pacific region and Africa.

Other Detroit Big Three automakers are also planning to beef up China sales. GM and its partner SAIC Motor Corp. intends to increase dealerships by more than 100 by the second quarter of 2011 to build a new brand of cars named the “Baojun.”


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