Ford announces second engine plant in China

CHICAGO — US auto giant Ford Motor Company said Saturday that it signed an agreement with Chinese officials to open a second engine plant in the southwestern city of Chongqing.

Plant construction is set to begin in 2011, with engine production scheduled to begin in 2013, the company said in a statement.

The 500-million-dollar investment will be funded entirely by Changan Ford Mazda Automobile Ltd (CFMA) -- a three-way joint venture involving Ford, Changan Motors and Mazda Motor Company -- and located in Chongqing's New North Zone.

"With the additional capacity of 400,000 units at the new plant, CFMA is more than doubling its existing engine capacity of 350,000, to 750,000 engines annually," Ford said.

"This new engine plant will help power our ambitious expansion plans here in the world's largest automotive market," said Joe Hinrichs, Ford's president for Asia Pacific and Africa.

"The growth potential in this part of the world in the next 10 years is astounding," Hinrichs added.

China's auto sales hit 13.64 million units last year, overtaking the United States as the world's top car market, while sales this year are forecast to hit 15 million units.

As of the end of 2009, there were 76.2 million vehicles in the country, according to government figures.

In early September Ford said its sales in China rose to 44,047 units for August a 24-percent increase over the same period the previous year.

Ford has said it expects 70 percent of its growth to come from Asia Pacific and Africa regions in the next decade.