Changan Motors, Ford Motor Company and Mazda Motor Company (CFMA) signed contracts with local government officials to build a new engine plant in Chongqing, China.
Construction on the $500 million plant will begin in 2011, and the facility will be in operation by 2013. The new plant will more than double CFMA's existing engine capacity from 350,000 units, to 750,000 engines annually, Ford said in a press release.
"This new engine plant will help power our ambitious expansion plans here in the world's largest automotive market," said Joe Hinrichs, Ford's president, Asia Pacific and Africa "We are working hard to expand sales and production here, and to offer more of the great vehicles from our global portfolio here in China and throughout the region. The growth potential in this part of the world in the next 10 years is astounding."
CFMA currently operates two vehicle assembly plants: one in Chongqing and the other in Nanjing. In Sept. 2009, CFMA broke ground in Chongqing on its third vehicle assembly plant, which will start producing the next-generation Focus in 2012--Ford's global flagship C-segment car.
"This investment will significantly expand our manufacturing capabilities and product offering in China," said Robert Graziano, chairman and CEO, Ford Motor China. "We have big plans for China. As part of our 'Better Plan' for China, we will continue to expand vehicle and engine production, grow our dealer network, and grow our team of local talents."