Ford Plans to Double its Production in China

Jun 22 2011

Ford’s joint venture in China – Changan Ford Mazda Automobile – plans to soon double its annual production of car engines to 750,000 units.

The company aims to reach this target after a new plant at Chongqing is opened in 2013.  The plant forms part of a $500 million investment project.  The engines are destined for the Chinese market.

This is, in fact, only one of a number of new investments Ford has made to support its future growth plans in China.  In 2010 the company’s commercial vehicle partner Jiangling Motors Corporation invested $300m in a new vehicle assembly plant.  In April this year, Ford said in a press release that the company plans on introducing 15 new models to the Chinese market by 2015.  The company also signed a preliminary agreement at the beginning of this year to build a transmission plant in Chongqing.

Ford’s commitment to the Chinese market seems to be built on solid ground.  Last year the State Information Centre announced that China will have 75 million cars on the road by the end of this year, surpassing Japan as the second biggest car market in the world.

In 2008 there were 50 million cars on Chinese roads.  This increased to 63 million by 2009, making the projection of 75 million cars by the end of 2011 seem somewhat conservative.

Close to 15 million cars are being sold in China each year, most of them financed through car credit.  That means the country now accounts for nearly 25% of the world car market.
 

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