Caijing quoted Changan Ford Mazda Automobile Co said recently that it will start building a third auto plant in China which will take in total investment of CNY 3.34 billion. The plant to be built on a 100 hectare site in Chongqing in southwest China is expected to start operations in 2012. The plant's annual capacity is at least 150,000 vehicles, and will bring total capacity at the Changan Ford Mazda joint venture to 600,000 units.
Joint venture partners Chongqing Changan Automobile Group, Ford Motor and Mazda Motor Co will hold 50%, 35% and 15% stakes in the new plant respectively. Mr Alan Mulally Ford chairman and CEO said the new plant will bring at least four up to date Ford brands into China in the next three years.
Mr Yin Jiaxu chairman of China Changan Automobile Group said the new plant represents an opportunity, as global automakers shift their focus to emerging markets. The joint venture currently has two plants in Chongqing and Nanjing, capital of eastern China's Jiangsu province, which operate a total of four production lines. Ten types of car have been produced and sold by the venture including the Ford Focus and the Mazda 3 sedans.
Mr Zou Wenchao vice executive chairman of Changan Ford Mazda said the two plants are rated at 410,000 units, but the first plant in Chongqing is running at overcapacity due to strong demand. He said that the third plant will first produce the Ford Focus and expand to other products later.
Mr Zou said without providing details that Changan Ford Mazda Automobile will develop low-carbon emission cars and use advanced technology on engines and gearboxes the next year. Changan Ford Mazda Automobile sold 144,600 Ford cars in the first eight months of 2009 up by 30%YoY. August sales of Ford cars jumped 111% to more than 20,000 units.
