Ford to Expand Chongqing Plant, Raising Capacity to 950,000

AutoInformed.com

Ford's is investing heavily in China, hoping to expand sales. The trend in 2012 thus far is the opposite.

Ford and its joint-venture Changan Ford Mazda Automobile (CFMA) will expand its already huge manufacturing complex in Chongqing by 350,000 passenger vehicles, raising total capacity in China to 950,000 vehicles annually. The $600 million investment will increase Ford’s total investment in China to roughly $4.1 billion.

This will make Chongqing by far the largest Ford production site in the world – a latter day Rouge for communist customers. The latest expansion includes a new assembly line, body and paint shop. Construction on the extension is expected to begin immediately and the first vehicle is expected to come off the line in late 2014. CFMA already operates two assembly plants and an engine plant in Chongqing, with another engine plant and a transmission plant currently under construction. 

“With a current growth rate of about 5%, the Chinese auto industry remains the biggest growth market in the world,” said Dave Schoch, chairman and CEO, Ford China. “Expanding our production capacity in Chongqing is a key part of our aggressive growth plans in China and Asia.

Ford will introduce 15 new vehicles and 20 new engines and transmissions in China by 2015 as part of its plan to broaden its product portfolio and powertrain offerings in China where it trails other global automakers.

Year-to-date through February, Ford China sales at 71,000 are down from 85,000 last year, a 15% decline. Ford hasn’t released March sales numbers yet. Last year Ford sold 519,000 vehicles in China, where it badly lags well-established competitors such as General Motors or Volkswagen Group, which outsell Ford by a 5:1 or 4:1 ratio, respectively.

About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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