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Ford recently announced that its successful joint venture in China – Changan Ford Mazda Automobile (CFMA) – is building a new, state-of-the-art and highly flexible passenger car plant in Chongqing, western China, scheduled for completion in 2012. Valued at US$490 million, the new facility will be capable of producing 150,000 units a year, boosting CFMA’s total annual production capacity to 600,000 units by 2012.
Robert Graziano, chairman and CEO, Ford Motor China, talks to @Ford online about what the new plant means for Ford in China and the region.
Q: How many plants does CFMA have in China now?
A: Presently, we have two plants in China under the CFMA joint venture. These include the already operational plant in Chongqing manufactures the award-winning Focus, Mondeo and S-MAX, and our state-of-the-art manufacturing facility in Nanjing builds the new, global Fiesta.
The new plant is located in Chongqing’s New North Zone, very close in proximity to our present facility in Chongqing.
Q: Why have you decided to build a new plant?
A: Based on our current growth rate and planning assumptions, the capacity of our two facilities in Nanjing and Chongqing will not be able to accommodate the expected future demand in China for our products. The new plant and expanded capacity is necessary to support our continued growth and to help meet the increasing demand for Ford vehicles in China.
Q: How is the investment split between the partners?
A: The investment is being entirely funded by the joint venture, CFMA. In fact, the overwhelming success of this joint venture has given it the ability to fully fund this investment, without help from the parent companies. The investment represents a significant step in Ford’s continuing aggressive expansion strategy in the Asia Pacific and Africa region and underscores the central role of China’s operations.
Q: Why did you choose Chongqing as the location?
A: We’ve enjoyed very successful operations in Chongqing since building our first passenger car plant here in 2001. We are firmly established there which makes for a more efficient investment and utilisation of resources. Additionally, the Chongqing municipal government has always provided us with strong support and we appreciate their world-class infrastructure.
Q: What will the new plant produce?
A: The global, next-generation Focus will be the first product manufactured at this new plant in 2012. It will have highly flexible production lines capable of producing a diversified range of products to support our future cycle plan.
Q: What will the new facility comprise of?
A: The new 100-hectare plant will be fully integrated to support stamping, body assembly, paint, trim and final assembly. It will be equipped with state-of-the-art automation and will utilise Ford’s global manufacturing processes and systems. A new paint shop will utilise Ford’s environmentally friendly Three-Wet technology paint process, which dramatically improves paint quality, depth and durability, as well as significantly reduces volatile organic compounds, CO2 emissions and waste.