Ford to Build Second Engine Plant in China

Sept. 27, 2010
The $500 million investment will be located in Chongqing's New North Zone.

Ford and its partners are building a new engine plant in China to support future products and ambitious growth plans. Ford's joint venture, Changan Ford Mazda Automobile Ltd (CFMA) signed a Memorandum of Understanding today with the Chongqing Municipal Government to build a new, state-of-the-art engine plant in Chongqing.

The $500 million investment will be funded entirely by CFMA and will be located in Chongqing's New North Zone.

CFMA is a three-way joint venture among Changan Motors, Ford Motor Company and Mazda Motor Company.\

"This investment will significantly expand our manufacturing capabilities and product offering in China," said Robert Graziano, chairman and CEO, Ford Motor China. "We have big plans for China. As part of our 'Better Plan' for China, we will continue to expand vehicle and engine production, grow our dealer network, and grow our team of local talents."

Construction of the new plant is planned to begin next year, with engine production starting in 2013. With the additional capacity of 400,000 units at the new plant, CFMA is more than doubling its existing engine capacity of 350,000, to 750,000 engines annually.

CFMA currently operates 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 Ford's global flagship C-segment car, the next generation Focus in 2012.

Ford Motor Company's other partner in China, Jiangling Motors Corporation in Nanchang, produces 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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