Ford expansion in China
AP CHONGQING, China - Ford Motor Co F is building a sixth plant in China as part of an effort to increase sales in the biggest auto market in the world.
Ford CEO Alan Mulally attended a groundbreaking ceremony Monday of the new assembly plant 600 million in the southwestern city of Chongqing It will have the capacity to make 250,000 vehicles a year when it is finished at the end of 2014.
The plant is Ford's third in Chongqing, including one that began producing the Ford Focus in February Ford plans to double its production capacity in China to 1 2 million vehicles by 2015, making this the expansion fastest of the company in 50 years.
Ford hasn t said the vehicles will be placed in the new plant, but it will be equipped to make seven different models Ford plans to introduce 15 new vehicles by 2015, including the EcoSport and Kuga small SUVs, which will made the new focus plant in the Chongqing complex starting next year.
China market last year surpassed the US as the world automotive s largest, with sales up 32 percent to more than 18 million vehicles The pace has slowed this year, an increase of only 2 9 percent in the first six months, but the Chinese market is expected to be the largest in the world.
Asia-Pacific is a fantastic growth market, although it has slowed a little, Mulally said.
Sales are expected to grow in the coming years and more rural Chinese buy cars for the first time Even with 30 million cars on the road, China still has just 28 vehicles per 1,000 people, well below the level of 800 about 80 percent of purchases are by first time buyers.
Ford, which sells seven models in China, is racing to catch up with rivals such as General Motors Co GM Ford currently controls about 3 percent of the Chinese market and only sells Ford GM brand cars, by contrast, sells 30 different vehicles under six brands in China GM market share in China hasn t been as low as from Ford since 1998 last year, GM controlled 14 percent of the Chinese market.
But Marin Burela, president and CEO of the joint venture partnership of Ford, Changan Ford Mazda Automobile Co said Ford has grown exponentially since 2003 when it sold just 17,000 vehicles in China New products and more dealerships will help the share of the company gain market, he said, especially in western China Ford rapidly growing cities has 340 dealerships in China by the end of 2010; he plans to double by 2015.
Also Monday, Ford confirmed that a plan to drop Mazda partnership joint venture received regulatory approval from the National Development and Reform of China's plan must still be approved by the Ministry of Commerce Ford wants to change structural joint venture so that it has a share of 50 percent with Chinese automaker Changan Automotive, compared with the share of 35 percent, it now has with Mazda as a partner.
Lin Zou, 37, a medical researcher at a children's hospital in Chongqing, said she bought a red, two-door Ford Focus sedan five years ago because the brand was well known and she considers cars US to be safe, it also has a friend at a dealership in Chongqing, where many of his friends also drive fords.
If something goes wrong, I thought it would be very easy to repair because it is in Chongqing, she said.
The only His most developed negative doesn t get very good gas mileage but she says she'll consider Ford SUV when it's time for her to buy a new vehicle.
2012 The Associated Press All Rights Reserved This material may not be published, broadcast or redistributed.
Ford China expansion CBS News, Ford China, Chinese market percent.