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Ford Announces Plans to Build New Engine Parts Plant in China

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On: Wed, Sep 29, 2010 at 9:54AM | By: Sherry Christiansen

Ford Announces Plans to Build New Engine Parts Plant in China

Many U.S. automakers are developing plans to take advantage of the economic boom in China, as well as of the increased demand for American vehicles by local Chinese consumers. Ford has announced its decision to begin the construction on a second automotive parts assembly facility in China.

Changan Ford Mazda Automobile Company is the name of Ford Motor Co.'s China venture that is made up of an alliance of Ford Motor Company, Mazda Motor Corporation, and Chongqing Changan Automobile Co. This week Changan Ford Mazda signed an agreement with the Chinese municipal government to build a new $500 million automotive engine plant in the local city of Chongquig. Those present at the signing were Chongqing Changan Chairman Xu Liuping, local government official Xiong Xue, and Ford China CEO Robert Graziano, as well as Ford Motor CFO Lewis Booth.

Ford plans to begin construction of the new plant in 2011 and the engine production will begin 2 years later.

The automotive plant will be the 2nd factory designed by Ford to produce automotive engines and it will add 400,000 engine units designed to supply automotive assembly lines in the city of Chongqing. Currently Ford manufactures 350,000 engines every year in China. According to a recent email written by Changan, the plant is projected to increase Ford’s existing engine capacity in China by twice the amount currently produced.

"This new engine plant will help power our ambitious expansion plans here in the world's largest automotive market," Joe Hinrichs, Ford's president for the Asia Pacific and Africa region, said in the statement.

According to Hinrichs: “We are working hard to expand sales and production here, and to offer more of the great vehicles from our global portfolio here in China and throughout the region. The growth potential in this part of the world in the next ten years is astounding."


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