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Ford to build new assembly plant in China

(Agencies)
Updated: 2009-09-25 11:52

DETROIT: Ford Motor Co. said Thursday it will invest $490 million to build an assembly plant in China to produce the next-generation Focus compact car, which it plans to sell globally.

The Dearborn, Michigan-based automaker confirmed speculation that it will ramp up its production capacity in the country in an effort to grab a bigger slice of the burgeoning auto market there and throughout the Asia Pacific regions.

The plant is being built in conjunction with Mazda Motor Corp. and Chang'an Automotive Co. under a joint venture -- Chang'an Ford Mazda Automobile -- in southwest China's Chongqing, Ford said in a written statement.

Slated for full completion by 2012, the plant would be Ford's second in Chongqing and third in China. In addition to the Focus, other small cars on the company's global C-car platform can be built there.

Ford lags behind other automakers in Asia, capturing only 2 percent of the auto sales there, compared with nearly 15 percent in North America and 10 percent in Europe.

Ford currently produces 450,000 vehicles in China annually. The new Chongqing facility will initially be able to manufacture 150,000 cars per year, with the capacity to produce 600,000 by 2012 when the plant is at full capacity.

The company plans to introduce four new vehicles in the Chinese market in the next three years.

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