December 02, 2008

Ford eying third assembly plant in China to meet demand

Reuters reported that Ford Motor Co may build a third assembly plant in China to meet fast growing demand for its cars just five years into its push into the booming Chinese market.

Mr John Parker executive vice president in charge of Ford's operations in Asia said "We are exploring opportunities to add to our capacity." He said that USD 510 million plants which began operations last year has an initial capacity to produce 160,000 vehicles per year that could be expanded so it can produce up to 300,000. Through its joint venture Changan Ford Mazda the No 2 US automaker also operates a nearby engine plant.

Mr Parker said in addition, Changan Ford Mazda has an assembly plant in the southwestern city of Chongqing. That facility is running near capacity at about 270,000 vehicles per year, making the area a clear candidate for new investment. He said "It is still up for discussion but Chongqing is a likely destination. We are currently capacity constrained in Chongqing so it's important to get Nanjing on stream this year."