Ford to build third plant in China

Ford Motor Co has announced it will spend $490 million on a new, state-of-the-art manufacturing plant in China.  The plant, in south-western Chongqing, will be run through Changan Ford Mazda Automobile (CFMA), the companyÔÇÖs joint venture with Chongqing Automobile Co and Japan's Mazda Motor Corp. Due to open in 2012, the one million square meter plant will produce the compact Ford Focus, with initial capacity for 150,000 vehicles a year. The facility will boost Ford and MazdaÔÇÖs combined Chinese production capacity from 447,000 to 600,000 vehicles per year. The new plant is FordÔÇÖs second in Chongqing and its third in China under the CFMA joint venture. Dearborn, Michigan-based Ford is hoping the new plant will significantly boost its presence in the Chinese market, where it currently lies twelfth behind such rivals as GM, VW, Hyundai and Toyota.  ChinaÔÇÖs sales outstripped those in the US for the first time in January this year, making it the worldÔÇÖs largest car market. Ford President and CEO Alan Mulally said: ÔÇ£TodayÔÇÖs announcement reinforces our commitment to the further expansion of our China operations to meet the continued rise in demand from Chinese consumers for world-class Ford products and services.ÔÇØ  John Parker, Ford executive vice president and president of Asia, Pacific and Africa, added: ÔÇ£This new passenger car facility represents a significant next step in the ongoing expansion plan of FordÔÇÖs Asia Pacific and Africa region and underscores the central role of our China operations.  ÔÇ£With the continued support of the Chinese government and hard work and dedication of our partners in China, we will continue to drive our operations forward in what is arguably the worldÔÇÖs most dynamic auto market.ÔÇØ In the first half of this year, Ford sold 197,212 vehicles in China, up 14 percent from the previous year. Total vehicle sales in the country were just over six million, up 17 percent from a year earlier. FordÔÇÖs rival, Detroit, Michigan-based General Motors, sold 814,442 units in the same period, up 38 percent year-on-year. Ford has said it hopes to introduce four vehicles to China over the next three years. * ┬á┬á┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á *