As the economic climate of the U.S. remains unpredictable, especially in the automotive industry, Ford Motor Company has decided to take its talents east.
Ford’s joint venture with China, known as Changan Ford Mazda Automobile (CFMA), has upped the ante, investing $500 million in a new engine plant in Chongqing, China. Set to begin production in 2013, the new plant will pump out an estimated 750,000 engines a year, more than double the current amount produced by CFMA.
But the $500 million plant is only one of many steps in Ford’s plan to strengthen its presence in China. In fact, Jiangling Motor Corporation, Ford’s commercial vehicle partner, began building a new $300 million vehicle assembly plant in Nanchang last July. And just two months ago Ford pledged to introduce 15 new cars to China by 2015, increasing its presence and popularity even further.
In addition to the new engine plant, Ford has also signed on to build its first and only transmission plant in China, which is projected to produce 400,000 units annually. With this combination of business deals, Ford expects to have twice as many employees and dealerships than before.
The ground-breaking ceremony for the engine plant was held last week with both Joe Hinrichs, president of Ford Asia Pacific and Africa, and Huang Qifan, Mayor of Chongqing, in attendance. It seems that the east and west are working together just fine.
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