Ford Motor Company has to do battle on a global basis and in order to up the ante in the largest vehicle market in the world, they will soon turn their attention to China. Announced recently, the automaker will make a heavy investment into the Chinese market so that the annual output capacity of the Chongqing facilities can keep up with the growing demand. When the expansion is complete, Ford China will have the ability to pump out 950,000 vehicles a year as soon as 2014. The investment will also help the Blue Oval achieve their goal of a 50 percent increase in global sales by mid-decade.
“With this additional investment and capacity expansion, Ford continues to lay the foundation for long-term growth in the world’s largest automotive market,” said Joe Hinrichs, president of Ford Asia Pacific and Africa. In order to boost capacity to the desired level, Ford will give Chongqing an investment of $600 million. Under the watchful eye of Changan Ford Mazda Automobile, the joint venture currently operates two assembly plants and an engine plant in Chongqing while another engine plant and transmission plant are being built. China’s vehicle market is showing no signs of slowing as its current growth rate is around 5 percent. Because of that, Ford is looking to bump capacity up by 350,000 annual units and do so in a mater of less than two years.
“Expanding our production capacity in Chongqing is a key part of our aggressive growth plans in China and Asia, and will allow us to bring more high quality, safe, fuel efficient, fun-to-drive vehicles from our global portfolio to Chinese customers,” said Dave Schoch, chairman and CEO of Ford China.