Ford drops plan to produce Kuga SUV in China

Shanghai, May 26 (Gasgoo.com) Earlier this month, Ford Europe launched the Kuga, a handsome compact SUV which will compete with the likes of the Toyota RAV4. But Ford Motor Company has recently dropped its plan to introduce the Kuga to China for local production.

The decision not to produce the first Ford SUV in China was jointly made by Ford and its Chinese partner Changan Ford Mazda. Two major reasons have reportedly prompted this decision: one is based on the strategic adjustment of Ford's global product development, with Ford SUV models to be developed in North America, which means the supply of the Kuga SUV made in Europe will dry up; another reason is that the local production of the Kuga SUV in China will further overload the limited capacity of Ford's Chinese joint venture.

Launched at last fall's Frankfurt Motor, the Ford Kuga is the first crossover designed and developed in-house by Ford Europe and is produced in Germany. Ford plans to build 45,000 units of the Europe-only this year, about 10% of the production capacity of the Saarlouis Plant in Germany where Ford also builds the new Focus and C-Max.

The Ford Kuga is inspired by the iosis X concept that was revealed at the 2006 Paris Motor Show. The latest showcase for Ford's 'kinetic design', the Ford Kuga will be powered by a 2.0 liter 136 PS Duratorq TDCi diesel engine. Kuga offers a rare blend of a wagon and SUV features together with coupe-like sporting qualities.