Ford To Double Presence In China, Announces New Plant
DEARBORN -- (WWJ) Ford is gearing up to become a major player in the expanding China market, announcing today that it's investing $760 million to build a brand new plant in Hangzhou. That plant will be able to build 250,000 vehicles a year. It's expected to go on line in 2015.
If you combine this with other recent announcements, Ford is working to double its production capacity in China.
Ford Aims To Double China Business
INTERVIEW: John Fleming, Ford VP Global Manufacturing
"We're going to take our total vehicle production in China up to 1.2 million units," said John Fleming, Ford's executive vice president of Global Manufacturing and Labor Affairs. 'Given the speed of our expansion, this is certainly the most rapid expansion the Ford Motor Company has had in the last fifty years."
This brings Ford's total investment in China to $4.9 billion.
With growth in the U.S. market slowing, all major automakers are looking at emerging markets like China.
"This expansion will help us realize an increase in global sales by about 50 percent from 2010 to about 8 million vehicles annually by mid-decade," said Joe Hinrichs, president of Ford Asia Pacific and Africa. "Building this plant helps lay the foundation for that growth and reconfirms our commitment to China,"
Expect more announcements from other automakers as we near Monday's start of the Beijing Auto Show. Ford says it will follow up this investment announcement with a product announcement next week.
China is now the world's largest car market. While growth has slowed a little this year, it's still seen as a country with an emerging middle class that's eager to get into the car market.
"We believe that the overall volume in China will go up over 30 million vehicles by 2020," Fleming told WWJ AutoBeat Reporter Jeff Gilbert. "It's very rapid growth. We're doing exactly what we've said. That is, we're going to keep capacity paced with demand."
Most of the vehicles Ford now sells in China are on the smaller side, including the Fiesta, Focus and the S-Max utility vehicle. Fleming isn't talking about product for the new plant. But, he said the goal is to expand Ford's offering in China.
"This will allow us to increase our vehicle range in China up to 15 vehicles."
Connect with Jeff Gilbert
Email: jdgilbert@cbs.com
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Twitter: @jefferygilbert
