At present, Ford has the capacity, through its joint venture Changan Ford Mazda Automobile, to build about 600,000 vehicles per year in China. That's not enough to sustain the brand's expected growth, so it makes sense that the automaker has officially announced plans to build a new facility in Hangzhou.

This $760 million expansion will bring Ford's total investment in China to $4.9 billion, and it will double the automaker's production capacity in that country by 2015. Ford calls this its most rapid expansion in 50 years – not surprising, given that the Chinese automobile market is expected to crest 30 million vehicles by 2020 – and it will make this region in China its largest manufacturing base outside its traditional playground in Southeast Michigan.

Ford isn't saying what vehicle(s) it plans to build at this new Chinese plant, but it is suggesting that it will increase its available models from five to 15, along with 20 new powertrain options, by 2015. Feel free to read Ford's official press release by scrolling down below.
Show full PR text
Ford China to Build US $760 Million Assembly Plant in Hangzhou; Doubles China Passenger Car Capacity to 1.2 Million Units Annually

· Ford will build a new state-of-the-art assembly plant in Hangzhou with its joint venture Changan Ford Mazda Automobile (CFMA), adding initial capacity of 250,000 units
· Ford's US $760 million (RMB 4.9 billion) investment in Hangzhou continues its aggressive expansion in China, bringing Ford's total investment in the country to US $4.9 billion to date.
· When Hangzhou opens in 2015, Ford's total passenger car capacity in China will increase to 1.2 million units annually, doubling current output


HANGZHOU, China, 19 April, 2012 – As part of its largest expansion in 50 years, Ford Motor Company today announced it will build a new state-of-the-art assembly plant in Hangzhou, China, doubling its production capacity in China to 1.2 million passenger cars annually by 2015.
Ford and its joint venture Changan Ford Mazda Automobile (CFMA) will invest US $760 million in the new plant, bringing Ford's total investment in China to approximately US $4.9 billion to date. The Hangzhou plant announcement comes just two weeks after Ford said it will invest US $600 million to expand capacity at its Chongqing facilities by 350,000 passenger cars, and less than six weeks after the company opened Chongqing 2, the home of the New Focus, which increased its China passenger car capacity by one-third to 600,000 units.

"These are incredibly exciting times for Ford in Asia," said Joe Hinrichs, president of Ford Asia Pacific and Africa. "So far, Ford's investments in China and across Asia represent its largest and most rapid global expansion in fifty years. This expansion will help us realize an increase in global sales by about 50 percent from 2010 to about 8 million vehicles annually by mid-decade. Building this plant helps lay the foundation for that growth and reconfirms our commitment to China, which is expected to have sales of about 30 million vehicles by 2020."

Construction of the new plant in Hangzhou will begin later this year, with the first vehicle coming off the line in 2015. Building a world-class assembly plant in Hangzhou further diversifies Ford's manufacturing footprint in China while giving it closer access to the large customer base in China's affluent coastal areas.

"The Chinese auto market remains one of the most vibrant in the world," said Dave Schoch, chairman and CEO of Ford China. "This expansion will allow Ford to deliver on our aggressive plan to bring 15 new vehicles and 20 new powertrains to China by 2015, giving Chinese consumers more choice in Ford's next-generation of high quality, fuel efficient, fun-to-drive vehicles. This latest plant expansion again highlights that Ford is ready to go further for its customers in China"

In addition to the recently announced capacity expansion project in Chongqing, CFMA already operates two assembly plants in Chongqing, with a new engine plant as well as a transmission plant currently under construction, making Chongqing the largest manufacturing location for Ford outside southeast Michigan. The joint venture also has an assembly and an engine plant in Nanjing, China.

Ford continues to ramp up its aggressive expansion in the world's largest automotive market, delivering high quality, safe, fuel-efficient and fun-to-drive vehicles to Chinese customers. Further evidence of this will be showcased at the upcoming Auto China 2012, where Ford will unveil four new global vehicles at one of the largest and most important auto shows in Asia.

The Hangzhou plant will further complement Ford's existing manufacturing base in China. In February, CFMA opened its second assembly plant in Chongqing, which houses a fully integrated facility including stamping, body assembly, paint, trim and final assembly operations.

Ford's joint venture CFMA is widely considered one of the leading passenger car manufacturers in China, known for its high-quality cars, as well as the development and introduction of advanced environmentally friendly technologies.


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  • 20 Comments
      drewbiewhan
      • 2 Years Ago
      How about exporting some American made cars to China?
        • 2 Years Ago
        @drewbiewhan
        [blocked]
          • 2 Years Ago
          [blocked]
        aatbloke1967
        • 2 Years Ago
        @drewbiewhan
        How about exporting some American made cars to China? Such as? 1) China, like every country apart from the US and Canada, uses UNECE-specification models. 2) China, like most countries outside of the US, prefers cars with fuel efficient engines since fuel costs more than a measly $4/gallon.
          Burabus
          • 2 Years Ago
          @aatbloke1967
          autobloggers are the worst businesspeople
        Steve
        • 2 Years Ago
        @drewbiewhan
        They do import luxury cars over to there. I have seen Chrylser 300's and Cadillac's over there. An imported Fiesta or Focus would be too expensive to sell there.
      Muttons
      • 2 Years Ago
      OK, first of all people need to shut up about "bringing jobs back to America" in this case. Ford sells cars. China needs cars. Like, a BILLION of them. Current US plants don't have the capacity so they have to build new plants. Doing so HERE only to end up shipping all the cars across the ocean is a horrible idea. It costs too much. Building them in China and selling them there as well is just a smart and logical business decision. If they were building them there and selling them HERE then maybe you'd have cause to complain, but they aren't. They are building cars in the market they are to be sold in, the same way they do in Europe and Australia. Get over it. Geez...
      Will
      • 2 Years Ago
      Massive amounts of derp incoming.... " HURR DURR FERD IS TAKIN JOBS FROM MURICANS"
      Justin Shaw
      • 2 Years Ago
      Here is an idea Ford. Bring back jobs to the US, and see how positive the reaction is. Maybe GM and Daimler will follow.
        merlot066
        • 2 Years Ago
        @Justin Shaw
        http://www.dailymarkets.com/economy/2011/10/04/american-manufacturing-renaissance-ford-to-in-source-12000-jobs-from-mexico-and-china/ Ford is insourcing 12,000 jobs from China, Mexico, and Japan.
        Steve
        • 2 Years Ago
        @Justin Shaw
        Only luxury cars from American car companies would make sense to import there. The Chinese rich can afford it. The Ford and Chevy brands would have to be built there in order for Chinese people to be able to afford them. Cars to be sold for the American market should be built here.
      showcars.co.za
      • 2 Years Ago
      It makes business sense for Ford to invest into emerging markets. Although they have a social responsibility as a US company, you have to remember they are a business, and profits are the game.
      SatinSheetMetal
      • 2 Years Ago
      Is it just me or do these articles give the impression that the Chinese just started buying vehicles recently. It's like every automaker on the planet expects to sell 5 times as much product there.
        Fuzzbear
        • 2 Years Ago
        @SatinSheetMetal
        They haven't just started buying, but the amount of people in China who can now afford to buy a car is increasing, and yes they can sell 5 times as much (probably more) of the product simply due to the size of the population. China has supposedly passed the US as the largest single automotive market back in 2009 and is not showing signs of slowing anytime soon.
        Muttons
        • 2 Years Ago
        @SatinSheetMetal
        China has been a communist country for many many years. People just going out and buying a car was unheard of. But as the country has opened up economically and embraced more free-market principles, people have become wealthier and the demand for products has skyrocketed.
      Carbon Fibre
      • 2 Years Ago
      I'd say so too, more than billion would need it.
      NY EVO X MR GUY
      • 2 Years Ago
      Its a great profit making tool. China's population will more than justify the sales potential for Ford and its share holders.
      gregmlr
      • 2 Years Ago
      That large bouquet of flowers makes them look like they're standing over a casket at a funeral.
      David Rios
      • 2 Years Ago
      well i hope my Focus wasnt built in one of those plants, i have mixed feelings about this but only time will tell by how many cars Ford recalls in the future.
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