27 August 2012

Ford and CFMA investing $600 million to expand capacity in Chongqing, China

Chongqing, China, Aug. 27, 2012 – As part of its most rapid expansion in a half-century, Ford and its joint venture Changan Ford Mazda Automobile (CFMA) today break ground at a third assembly plant in Chongqing, China. CFMA has also signed a letter of intent with the Municipality of Chongqing to explore expanding its research and engineering capability in Chongqing. 

Ford and CFMA are investing approximately $600 million U.S.(RMB 3.8 billion) to build the “Chongqing 3” assembly plant, as they continue to ramp up capacity to meet growing demand in the world’s largest auto market. Chongqing 3 will have the capacity to produce 250,000 vehicles annually. CFMA is also expanding the capacity of its “Chongqing 2” assembly plant by 100,000 vehicles, for a total capacity increase in Chongqing of 350,000 vehicles. 

“This expansion will allow us to continue to serve our Chinese customers with the very best in vehicle quality, green technology, safety and smart design as we bring 15 new vehicles to China by 2015,” said Alan Mulally, president and CEO, Ford Motor Company, at the event. “To meet continued demand in China, we are doubling the number of assembly plants and doubling our production capacity. This reinforces the great, long-term partnership we have with Changan and the city of Chongqing. Ford is also pleased that CFMA is expanding its research and engineering capacity. 

Joining Mulally for the groundbreaking ceremony are Chongqing Mayor Huang Qifan; Joe Hinrichs, president, Ford Asia Pacific and Africa; Dave Schoch, chairman and CEO, Ford Motor China; Changan Automotive Chairman Xiu Liuping; and CFMA President Marin Burela, among others. 

Chongqing is the largest global manufacturing location for Ford outside southeast Michigan. CFMA already operates two assembly plants in Chongqing, with another engine plant and a transmission plant under construction. Ford has five manufacturing facilities in China that are currently operational, and together with its partners, it is building five more. The first vehicle is expected to come off the line at Chongqing 3 in late 2014. 

Ford will introduce 15 new vehicles and 20 new engines and transmissions in China by 2015 as part of the company’s plan to broaden its product portfolio and powertrain offerings in China. 

As part of Ford’s growing SUV lineup in China, Chongqing will be home to the all-new EcoSport and all-new Kuga, both of which were showcased at Auto China 2012 in Beijing in April. Both vehicles are equipped with fuel-efficient and eco-friendly EcoBoost engines. 

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 168,000 employees and about 65 plants worldwide, the company’s automotive brands include Ford and Lincoln. The company provides financial services through Ford Motor Credit Company. 

Source: Ford