Ford Motor Company and its government dictated partners are building new engine plant in China that is due to open in 2013. With the additional capacity of 400,000 units at the new facility, Ford’s joint venture, Changan Ford Mazda Automobile Ltd (CFMA) is more than doubling its existing engine capacity of 350,000, to 750,000 engines annually.
China is now by far the world’s largest auto market, and Chinese industrial policy in effect requires that all profits earned there are reinvested in the country and its local partners. The U.S. remains alone among industrialized nations – with elected or totalitarian governments – without any such job and investment protecting policy. The $500 million (RMB 3.4 billion) investment will be funded entirely by CFMA and will be located in Chongqing’s so called New North Zone.
CFMA is a three-way joint venture among Changan Motors, Ford Motor Company and Mazda Motor Company.
CFMA currently has two vehicle assembly plants, one in Chongqing and the other in Nanjing. Last September, CFMA broke ground in Chongqing for its third vehicle assembly plant, which will start producing the new Ford Focus in 2012.
Ford Motor Company’s other partner in China, Jiangling Motors Corporation in Nanchang, makes commercial vehicles, including the Ford Transit, one of the best sellers in China’s high-end light bus segment. JMC recently broke ground for a new commercial vehicle plant with an investment of $300 million this July.
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