Today is an important day for achieving our One Ford goal of delivering profitable growth for all.
As you can read in the article below, we are announcing today an investment of $760 million to build a new, state-of-the-art vehicle assembly plant in Hangzhou, China. This new facility, when opened, will have the capacity to build 250,000 vehicles per year and will help us to double our passenger car capacity in China to 1.2 million units in less than three years.
This plant, along with the seven others in various stages of construction in Asia Pacific, will allow us to better meet the enormous growth in vehicle demand expected there in the coming years. In fact, we expect the Chinese market to grow to about 30 million vehicle sales by 2020. This expansion – the most rapid expansion of our Manufacturing footprint we have experienced in 50 years – along with the commitment we have made to increase our manufacturing capacity in the U.S., will go a long way toward helping us meet our commitment to increase vehicle sales by 50 percent around the world – up to 8 million units by 2015.
This growth could not happen without the commitment of our entire global team. Thank you all for your continued efforts to offer our customers around the world the highest-quality, most fuel-efficient, fun-to-drive vehicles in our history.
Ford Executive Vice President
Manufacturing and Labor Affairs
HANGZHOU, China – 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 since 2006. 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.
Joe Hinrichs delivers a speech at the signing ceremony.