Ford invests $760 million for construction of new facility in eastern China

Article by Christian Andrei, on April 19, 2012

Ford is spending $760 million to construct a new factory in eastern China, specifically in Hangzhou, Zhejiang province. This is in line with the automaker's efforts to become the largest vehicle manufacturer in the world and its goal to catch up to General Motors and Volkswagen. According to Ford, the new facility will aid in increasing Chinese output by 100% to 1.2 million vehicles each year when production commences in 2015.

The construction is set to start later in 2012. The disclosure of the investment comes two weeks after Ford revealed that it would shell out $600 million in order to construct a third facility at its Chongqing complex in southwest China and is in line with the company's fastest and largest expansion since the 1960s in Europe and North America.

Currently, Ford has disclosed or commenced construction of eight powertrain and assembly factories in Asia. Ford entered China relatively late compared to rivals VW and GM, which both have a substantial lead in the country. Ford has a three-way alliance with Japan's Mazda and China's Chongqing Changan Automobile. It manufactures Mondeo, Focus, Fiesta and other sedans in China.

In 2011, Ford achieved sales of 320,658 vehicles in China, compared with the 2.26-million annual tally of VW and the 2.55 million figure for GM. By the middle of the decade, Ford and its joint ventures are aiming to have seven assembly plants, one transmission facility and two engine factories in China. Joe Hinrichs, Ford's head of operations in Asia, stated that they are studying this "more than just this quarter or this calendar year." He added that they are mulling over as to how Ford set itself up for success in the Asia Pacific region over the next several decades.

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016