It is reported that Ford Motor Co broke ground on Thursday on a USD 500 million engine factory in Southwest China as the automaker seeks to expand in the world largest market and boost global sales by 50% in four years.
According to its statement the plant in the South Western Chinese city of Chongqing will more than double engine capacity for joint venture Changan Ford Mazda Automobile Co to 750,000 units when output starts in 2013. Ford forecast last week that growth in Asia will help boost global sales by 50% to 8 million vehicles a year by 2015.
Mr Alan Mulally Chief Executive Officer expects 55% of vehicle sales will be small cars and a third will be in Asia by 2020. Ford which still gets most of its sales and profit from the United States and Europe holds a 2.4% share of the passenger vehicle market in China trailing General Motors Co 10%.
Mr Lewis Booth Chief Financial Officer said last week that the engines built in Chongqing will be used in Ford-branded vehicles built and sold in China. The automaker based in Dearborn, Michigan plans to triple its lineup in China by offering 15 models including the Kuga small sport-utility vehicle by the middle of the decade.
Ford marketing chief said last week that Ford plans to double its number of dealerships in China to 680 by 2015 and is spending USD 1.6 billion building four factories there. By next year, the company will have the capacity to build 1.1 million vehicles in China, Jim Farley.
Sourced from China Daily