CHINA: Ford adding 250,000 units in Hangzhou

Only days after announcing another expansion of its just-expanded Chongqing factory, Ford said its joint venture Changan Ford Mazda Automobile (CFMA) would build another in Hangzhou adding initial capacity of 250,000 units.

The US$760m (RMB4.9bn) plant opens in 2015, taking passenger car capacity in China to 1.2m units annually, doubling current output. Chongqing is now good for 600,000 - and will add the new Kuga/Escape alongside the Focus later this year - and the recently announced expansion there will add 350,000 units late in 2014.

"These are incredibly exciting times for Ford in Asia,” said Joe Hinrichs, president of the Asia Pacific and Africa unit. “This expansion will help us realise an increase in global sales by about 50% from 2010 to about 8m 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 30mvehicles by 2020.”

New engine and transmission plants are currently under construction as well as the latest assembly expansion, making Chongqing the largest manufacturing location for Ford outside southeast Michigan. The joint venture also has assembly and engine plants in Nanjing.