Ford Motor Co, which is closing factories in North America, is
mulling a new car plant in China with its Japanese unit Mazda Motor
Co and local partner Chang'an Motor Corp, to meet growing
demand.
Kenneth Hsu, spokesman for Ford's China operations, told China
Daily: "We are gauging the need for further expansion of our
manufacturing capacity. We are considering all kinds of
options."
The US carmaker plans to reach a final decision by early next
year, Hsu said, declining to give details.
"Local governments are keen to have a new plant from Ford in
their regions," he said.
Chang'an Ford Mazda Automobile Co, a tripartite joint venture,
now has two factories in the western municipality of Chongqing and
Nanjing in the east with a combined production capacity of 410,000
cars a year.
Jeffrey Shen, president of the venture, said it will move
225,000 cars this year, mainly boosted by the hot-selling Focus
compact model, up from roughly 160,000 units in 2006.
The venture's 2008 sales are expected to reach 300,000 units,
Shen said.
The tie-up, whose current line-up also includes the Ford Mondeo
and S-Max, Mazda3 and Volvo S40, plans to produce a subcompact
based on the Verve concept before the end of next year, Shen said.
The Verve made its Asian premiere at a recent auto show in
Guangzhou.
The venture will also launch the Mazda2 subcompact in 2008.
"Our profitability is fairly good," Shen said, without
elaborating.
Chang'an holds a 50 percent stake in the venture, Ford 35
percent and Mazda 15 percent. Mazda is one-third owned by the
Detroit-based group.
Shen predicted that total vehicle sales in China, the world's
second-biggest auto market after the US, will hit 9 million units
this year and 10 million units in 2008, propelled by the country's
booming economy. Last year, sales amounted to 7.22 million
units.
Other foreign carmakers, such as Toyota, Volkswagen, PSA Peugeot
Citroen and BMW, are also planning to build more production
capacity in China.
Ford also owns a 30 percent stake in another Chinese automaker
Jiangling Motors Co Ltd, which makes Transit commercial vehicles in
the eastern city of Nanchang.
The struggling US carmaker said two years ago it planned to shut
down at least 10 plants in North America by 2010 as part of its
turnaround plan.
(China Daily December 4, 2007)