Ford China splits production between 2 factories

Ford Motor's joint venture in China, Changan Ford Mazda will complete the construction of its Nanjing production base later this year. The new factory, located at the lower Yangtze River, will have a different product lineup compared to its old Chongqing factory at the upper Yangtze River

The new Ford Mondeo, which is already a hit in Europe, will be put into production in the Chongqing factory between July and Sep. whereas the brand new Ford Fiesta will roll off the Nanjing factory assembly line next summer. In the future, the Chongqing facility will focus on Ford's mid-range vehicle production while the Nanjing facility will produce mostly economical models with emissions below 1.6L.

The new Mondeo will enhance Changan Ford's sales figure,which has been relying solely on Ford Focus. In 2006, Changan Ford's sales increased 120% thanks to the success of Ford Focus, which was launched in late 2005 and has won the hearts of most white-collars. "The old generation of Mondeo sedan will be dropped from the market after the new ones come out," according to Yao Yu, the PR manager of Changan Ford.

Fiesta was among the first models to be introduced in China, but its entry was a flop as it failed to suit customers' taste. The new Fiesta will roll off the line after Mazda2 has been put into production at the Nanjing factory. As one of Ford's classic model, Fiesta is eyeing a higher sales revenue in China.     

Changan Ford Mazda, a three-way tie-up between Ford, Chongqing Changan, and Mazda Motor Corp, will strengthen the in-house platform technology. Changan Ford will share several platforms with Mazda and Volvo, including the existing mid-range sedan platform, and the platform on which Volvo S40, Mazda3 and Fox are based on.

The development of Changan Ford has been hampered by its production bottleneck, but as the new factory starts its operation, Changan Ford will have no excuses. The new Mondeo, which has a stylish design and excellent performance, is now available for test drive.

“What is lacking could be a solid marketing strategy from Changan Ford,” an industry expert commented.