Ford Motor Company will spend $350 million in a joint venture in the Chinese auto market, building the companies first transmission plant in the world’s largest car market.
The plant in Chongqing, southwest China will be able to produce just under half a million six-speed automatic transmissions. The factory will make them for the Changan Ford Mazda Automobile Limited joint venture.Ford’s presence is quite small in China, but building this plant is part of its growth plans. Ford said that the construction will start in July and production of the transmissions will start in late 2013.
This is perfect for Ford dealer as you will probably get a better stock of parts now that the plants are in full swing.
The company is already building a $500 million plant in Chongqing for building engines, which will open in two years’ time.
China’s car market overtook the US last year. Sales increased 32 percent last year to over 18 million vehicles, growth has been slower this year so far.
“Together with prior investments announced in the past few years, this new plant demonstrates Ford’s unprecedented commitment to the China market,” Joe Hinrichs, president of the company’s Asia Pacific and Africa region, said in a statement. Ford plans to introduce 15 new vehicles to China by 2015, Hinrichs said.
The Ford Fiesta, Focus Compact and the Mondeo are all made by Changan Ford Mazda for sale in China.
Sales of Ford vehicles increased in Chinda by 15% during the first four months of the year to 184,906 units, but it was still tiny compared to the 6.53 million vehicles sold nationwide from Jan through to April.
General Motors are still ahead of Ford in terms of sales during the same period, which GM sold a record number of 888,950 units.
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