Ford says to bring 15 new vehicles to China by 2015

Reuters - Ford Motor Co will bring 15 new vehicles to China by 2015, its China chief said on Friday, as it accelerates expansion in the world's largest auto market.

The Detroit automaker, which competes with General Motors Co and others in China, would double its dealerships in China over the next five years from 340 now, and add 1,200 new jobs.

The steps mark the latest round of initiatives that Ford has taken in the country since its Asia and Africa chief Joe Hinrichs took the helm at its China operations in October 2010.

"Frankly, our whole operations are getting more aggressive about China and about our whole business here," Hinrichs told Reuters on the phone.

In March, Ford sold 53,440 vehicles in China, up 20 percent from a year earlier, vastly outpacing the 5.4 percent gain of the overall market, which has lost some steam after two consecutive years of breakneck expansion.

Larger rival GM sold 233,014 vehicles in March, up 1.3 percent, while Honda Motor's monthly sales declined 5.3 percent.

Hinrichs attributed Ford's performance in part to the U.S. automaker's dealership expansion in smaller cities which are replacing the affluent east coast as a major industry growth driver.

He reiterated Ford's target to outpace the China market for the full year, which he expected to gain 5-10 percent.

Ford makes Focus, Fiesta, Mondeo and other models in China in partnership with Chongqing Changan Automobile Co and Mazda Motor Corp . It also holds a 30 percent stake in Jiangling Motors Corp Ltd , a major Chinese light commercial vehicle maker based in the central province of Jiangxi.

Sources had told Reuters that Hinrichs had expressed an interest to increase Ford's stake in Jiangling when meeting with the governor of Jiangxi late last year.

He declined to comment on the meeting but said Ford had always been interested in "increasing" its partnership with both Changan and Jiangling.

Jiangling Motors currently operates two plants, with combined capacity of 210,000 units, making JMC and Ford's Transit models.

In July, the partners broke ground for a $300 million vehicle plant, capable of producing up to 300,000 units annually. The facility is scheduled to start operations at the end of 2012.

Several overseas automakers such as GM, Honda and Nissan have unveiled plans to create a new brand with local partners, which some industry observers say would help them penetrate 4th or 5th tier markets where cheaper domestic brands currently dominate.

Ford, Hinrichs said, would remain focused on its own brand in China, but would continue to study the industry dynamics.

Ford, Mazda and Changan are pending regulatory approval to split their three-way China tie into two separate joint ventures to streamline their businesses.