Ford Motor Company announced on Thursday to build a $760 million (approximately 4.8 billion Chinese Yuan) assembly plant in Hangzhou in eastern China, which is expected to double the company's annual car capacity to 1.2 million.
The U.S. automaker and its joint venture Changan Ford Mazda Automobile (CFMA) together will invest in the plant. The new plan will start later this year and the first car will come out in 2014, according to the report.
"These are incredibly exciting times for Ford in Asia,” said Joe Hinrichs, president of Ford Asia Pacific and Africa, in the Thursday's announcement.
“So far, Ford’s investments in China and across Asia represent its largest and most rapid global expansion in fifty years. 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. Building this plant helps lay the foundation for that growth and reconfirms our commitment to China, which is expected to have sales of about 30 million vehicles by 2020."
Two weeks ago, Ford announced to invest $600 million in its Chongqing facilities to increase capacity by 350,000 cars. Six weeks ago, the auto industry opened Chongqing 2. The Hangzhou plan will bring Ford's total investment in China to be around $4.9 billion since 2006.
“The Chinese auto market remains one of the most vibrant in the world,” said Dave Schoch, chairman and CEO of Ford China.
“This expansion will allow Ford to deliver on our aggressive plan to bring 15 new vehicles and 20 new powertrains to China by 2015, giving Chinese consumers more choice in Ford's next-generation of high quality, fuel efficient, fun-to-drive vehicles. This latest plant expansion again highlights that Ford is ready to go further for its customers in China”
Ford continues to expand in the world’s largest automotive market. The company plans to unveil four new vehicles at the upcoming Auto China 2012 in Beijing, which is one of the largest and most important auto shows in Asia.
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