Joint venture of Ford Motor Co. in China will spend $350 million to construct the company's initial transmission plant in the world's biggest auto marketplace. The company said Thursday how the factory in Chongqing in southwest China is going to be able to construct 400,000 six-speed automatic transmissions.
It'll make them for Changan Ford Mazda Automobile Limited, china partnership. Ford carries a relatively little presence in fast-growing China but says the plant is part of their growth plans. The company said construction will begin in July and production will start at the end of 2013.
Ford also is constructing a $500 million engine plant in Chongqing that will open by 50 % years. China's auto marketplace this past year overtook the U.S. as the world's largest. Sales rose 32 percent recently close to 18 million vehicles, but have slowed to single digit growth so far this coming year.
"Together with prior investments announced within the past couple of years, this new plant demonstrates Ford's unprecedented commitment to the China marketplace," Joe Hinrichs, President of the company's Asia Pacific and Africa region, said in a very statement. Ford offers to introduce 15 new vehicles to China by 2015, Hinrichs said.
Changan Ford Mazda makes all the Mondeo midsize car, the Focus compact, Fiesta subcompact and S-Max modest van to be found in China. The Dearborn, Mich., automaker got a late start in China and is also trying to catch as much as its key U.S. rival, General Motors Co., which sells a lot more vehicles in China than it does inside the U.S.
Ford's sales in China rose 15 % throughout the first four months of year to 184,906 vehicles. However it was still a small fraction in the 6.53 million vehicles sold nationwide from January to April, according to the China Association of Automobile Manufacturers.
Ford's sales are likewise far behind GM, which sold accurate documentation 888,950 vehicles throughout the same period. January-April sales in China rose 6 percent, slowing sharply from the double-digit growth observed in recent years, the Beijing-based association said.