Xu Liuping, president, Chang’ An Automobile Company, and Joe Hinrichs, president, Ford Asia Pacific and Africa on the Ford stand at 2012 Auto China.
Changan Ford Mazda Automobile (CFMA) today broke ground for a third assembly plant, Chongqing 3, in China. CFMA has also signed a letter of intent with the Municipality of Chongqing to explore expanding its research and engineering capability in Chongqing.
The $600 million expansion will make Chongqing the largest Ford production site in the world by far – a latter day Rouge for communist customers. Chongqing 3 includes a new assembly line, body and paint shop. The first vehicle is expected to come off the flexible assembly 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.
Chongqing 3 will have the capacity to produce 250,000 vehicles annually. CFMA is also expanding the capacity of its “Chongqing 2” assembly plant by 100,000 vehicles, for a total capacity increase in Chongqing of 350,000 vehicles.
Joining Ford CEO Alan Mulally for the groundbreaking ceremony were Chongqing Mayor Huang Qifan; Joe Hinrichs, president, Ford Asia Pacific and Africa; Dave Schoch, chairman and CEO, Ford Motor China; Changan Automotive Chairman Xiu Liuping; and CFMA President Marin Burela, among others.
Ford has five manufacturing facilities in China that are currently operational, and together with its partners, it is building five more.
The plants in Chongqing also incorporate Ford’s single manufacturing operating system, designed to improve efficiencies, increase capacity use and make the company an industry leader in lowest total cost production. Chongqing 3, like all new Ford manufacturing facilities, will have the flexibility to build up to seven different models.
Ford’s China sales in July totaled 42,560 up 32%. Most of the increase was due to the joint venture CFMA, which sold 26,306 Ford-brand cars, an increase of 44% from July of 2011. Sales of the old and new Focus dominated the results. Total Ford brand car sales including the imported Edge and Explorer were 27,498.
Ford China’s performance year-to-date is not as strong (due to an inexplicably bad first quarter) with 319,882 vehicles sold, an increase of 4% from the January to July 2011 period in a 2012 market that is growing at twice that rate. Insiders say Ford is considering bringing the moribund Lincoln brand to the market.
