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When we asked Volkswagen last year why it was building a factory in the U.S., after having missed the irrationally volcanic era of car sales, we were told that even a 12-million-per-annum market was still too big to ignore. A report in Reuters paints Ford's situation in China somewhat the same way: Ford is only now attacking the Chinese market, building plants and increasing local capacity there, after numerous other players have established their positions.


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.