Ford Motor Company has announced that it will open a second engine plant in China as the American automaker works to get a stronger position in the booming Chinese automotive market. Ford’s Chinese arm, known as Changan Ford Mazda Automobile Ltd (CFMA), signed a deal with the Chongqing Municipal Government to build a state of the art engine facility in their town. While improvements in other markets help Ford Motor Company’s overall standing, thus helping the Detroit based company; the $500 million (USD) factory investment will come entirely from the CFMA group.
Joe Hinrichs, Ford's president for the Asia Pacific and Africa regions, had this to say about the announcement:
"This new engine plant will help power our ambitious expansion plans here in the world's largest automotive market. We are working hard to expand sales and production here, and to offer more of the great vehicles from our global portfolio here in China and throughout the region. The growth potential in this part of the world in the next ten years is astounding."
The construction of the new CFMA Chongqing engine facility is expected to begin early in 2011 with the plant beginning engine production by 2013. Once Ford has the Chongqing engine facility up to full speed, it will offer an output of 400,000 engines a year, more than doubling the current capacity of the existing CFMA plant.
As the Chinese auto industry continues to grow at an amazing rate, the American automakers are working hard to make sure to get their piece of the Chinese pie. General Motors has announced that they will begin offering more brands in China (click here for more on that) and now Ford is preparing for added Chinese market sales with this new engine facility investment.
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