Ford Breaks Ground on New Plant in China -- Largest Expansion in 50 Years

Aug. 29, 2012

New facility will: double Ford's production capacity in China to 1.2 million passenger cars annually by 2015. bring Ford’s total investment in China to approximately US$4.9 billion since 2006. help company reach the goal of increasing worldwide sales nearly 50% by mid-decade to 8 million vehicles per year.

Adrienne Selko

Ford Motor Co. (IW 500/6) broke ground on Wednesday on its new state-of-the-art assembly plant in Hangzhou, as part of the company’s largest expansion in 50 years.

Ford and its joint venture Changan Ford Mazda Automobile (CFMA) will invest $760 million in the new plant, bringing Ford’s total investment in China to approximately US$4.9 billion since 2006.

The plant will double production capacity in China to 1.2 million passenger cars annually by 2015.

“Here in Hangzhou, we are laying the foundation for the future of Ford globally,” said Alan Mulally, CEO, Ford Motor Co. at the event. “At Ford, our goal is to offer fuel-efficient, high-quality vehicles from our global portfolio that customers in markets like China want and value. This state-of-the-art facility will help us reach the goal of increasing worldwide sales nearly 50% by mid-decade to 8 million vehicles per year.”

The Hangzhou plant is part of Ford’s aggressive expansion in Asia Pacific and Africa, with nine new plants (seven under construction) planned.

The new plant further diversifies Ford’s manufacturing footprint in China while giving the company better access to the large customer base in China’s affluent coastal areas.

“This new plant is an important part of our aggressive plan to bring 15 new vehicles and 20 new powertrains to China by 2015, giving customers here even more choice in Ford’s next generation of high-quality, fuel-efficient, fun-to-drive vehicles,”said Dave Schoch, CEO, Ford Motor China.

In February, CFMA opened its second assembly plant in Chongqing, which houses a fully integrated facility including stamping, body assembly, paint, trim and final assembly operations.

On Monday, the company broke ground on another new assembly plant in Chongqing, where a new engine plant as well as a transmission plant are also under construction, making Chongqing the largest manufacturing location for Ford outside southeast Michigan. The joint venture with CFMA also has an assembly and an engine plant in Nanjing, China.

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today.

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.