Ford Venture to Build $500M Engine Plant in China

Changan Ford Mazda Automobile Ltd. will more than double engine production by 2013

A Ford Motor Co. joint venture has committed to build a new, $500-million plant to produce engines for the vehicles they manufacture there. Changan Ford Mazda Automobile Ltd. is a partnership of Changan Motors (50%), Ford Motor Co. (35%), and Mazda Motor Co. (15%) that has two vehicle assembly plants in China and a third under construction.

Changan Ford Mazda Automobile Ltd. (CFMA) signed a memo of understanding with the Chongqing Municipal Government recently. It will fully fund the new plant to be built in Chongqing's New North Zone.

"This investment will significantly expand our manufacturing capabilities and product offering in China," stated Ford Motor China chairman and CEO Robert Graziano. "We have big plans for China. As part of our 'Better Plan' for China, we will continue to expand vehicle and engine production, grow our dealer network, and grow our team of local talents."

The specific engine products to be produced at Chongquing have not been detailed. CFMA now produces two engine designs, one provided by Ford and one by Mazda

CFMA produces Ford passenger cars for the Chinese market, including the Fiesta, Focus, Mondeo, and S-Max. Its vehicles are powered by engines produced at the current Changan Ford Mazda Engine Co. Ltd., in Nanjing, a fully integrated (casting, machining, assembly) operation that has been producing engines since 2007.

"This new engine plant will help power our ambitious expansion plans here in the world's largest automotive market," stated Ford Asia Pacific and Africa president Joe Hinrichs. "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 10 years is astounding."

Ford’s other partner in China, Jiangling Motors Corp. in Nanchang, broke ground in July for a new, $300-million commercial vehicle plant.

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