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Ford starts construction of new engine plant in China

ABR Staff Writer Published 17 June 2011

Ford Motor's passenger car joint venture in China, Changan Ford Mazda Automobile (CFMA), has started construction of a new $500m engine plant in Chongqing, China.

The investment is expected to more than double the joint venture's annual engine production capacity in China to 750,000 units.

The company said that the engines will come online in 2013 and will be used in Ford-brand vehicles manufactured and sold in the country.

Ford China president of Ford Asia Pacific and Africa, and chairman and CEO Joe Hinrichs said the construction of the new engine plant represents yet another milestone in the company's accelerated expansion plan for China.

"This plan reinforces our commitment to aggressively grow the Ford brand in China and offer a full range of exciting, fuel-efficient vehicles to Chinese customers," Hinrichs said.

As part of the company's expansion plan in China, last year its commercial vehicle partner in China, Jiangling Motors (JMC), has started construction of a new new $300m vehicle assembly plant in Nanchang, which produces the Ford Transit.

In April 2011, the company said that it will bring 15 new vehicles to China by 2015, which will strengthen its position in existing segments while driving new growth in others.

In addition, the automaker signed an MOU in May to build its first transmission plant in the country, also in Chongqing, with an initial annual capacity of up to 400,000 units.