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04-12-2007
Ford
Motor Co, which is closing factories in North America, is mulling a new car plant
in China with its Japanese unit Mazda Motor Co and local partner Chang'an Motor
Corp, to meet growing demand. Kenneth
Hsu, spokesman for Ford's China operations, told journalists: "We are gauging
the need for further expansion of our manufacturing capacity. We are considering
all kinds of options." The
US carmaker plans to reach a final decision by early next year, Hsu said, declining
to give details. "Local
governments are keen to have a new plant from Ford in their regions," he
said. Chang'an
Ford Mazda Automobile Co, a tripartite joint venture, now has two factories in
the western municipality of Chongqing and Nanjing in the east with a combined
production capacity of 410,000 cars a year. Jeffrey
Shen, president of the venture, said it will move 225,000 cars this year, mainly
boosted by the hot-selling Focus compact model, up from roughly 160,000 units
in 2006. The
venture's 2008 sales are expected to reach 300,000 units, Shen said. The
tie-up, whose current line-up also includes the Ford Mondeo and S-Max, Mazda3
and Volvo S40, plans to produce a subcompact based on the Verve concept before
the end of next year, Shen said. The Verve made its Asian premiere at a recent
auto show in Guangzhou. The
venture will also launch the Mazda2 subcompact in 2008. "Our
profitability is fairly good," Shen said, without elaborating. Chang'an
holds a 50 percent stake in the venture, Ford 35 percent and Mazda 15 percent.
Mazda is one-third owned by the Detroit-based group. Shen
predicted that total vehicle sales in China, the world's second-biggest auto market
after the US, will hit 9 million units this year and 10 million units in 2008,
propelled by the country's booming economy. Last year, sales amounted to 7.22
million units. Other
foreign carmakers, such as Toyota, Volkswagen, PSA Peugeot Citroen and BMW, are
also planning to build more production capacity in China. Ford
also owns a 30 percent stake in another Chinese automaker Jiangling Motors Co
Ltd, which makes Transit commercial vehicles in the eastern city of Nanchang. The
struggling US carmaker said two years ago it planned to shut down at least 10
plants in North America by 2010 as part of its turnaround plan.
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