Asia:Ford to invest up to $1.5 billion in China expansion - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars
Ford Forum Ford Forum

» Auto Insurance
» Featured Product
» Wheel & Tire Center

Go Back   Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News
Register Home Forum Active Topics Photo Gallery Auto Loans Garage Mark Forums Read Auto Escrow

FordForums.com is the premier Ford Forum on the internet. Registered Users do not see the above ads.
Reply
 
LinkBack Thread Tools Display Modes
Old 10-17-2003, 08:09   #1 (permalink)
Registered User
 
Stacy94PGT's Avatar
 
Join Date: Feb 2001
Location: The Hills of North Georgia,USA
Posts: 7,859
Asia:Ford to invest up to $1.5 billion in China expansion

Autos Insider
By Tian Ying / Bloomberg News

BEIJING -- Ford Motor Co., which makes half as many cars in China as General Motors Corp., plans to spend as much as $1.5 billion to expand production and boost market share in the world's fastest-growing auto market.

Ford will build a second plant and expand its factory in the southwestern city of Chongqing that makes Mondeo and Fiesta cars, Chief Executive Officer William Clay Ford Jr. told reporters Friday in Beijing. The company will also build an engine-making plant in China.

Ford, General Motors, Volkswagen AG and Toyota Motor Corp., are expanding in China as their home markets contract. Car sales are forecast to expand by a quarter this year, compared with a 4.3 percent decline in western Europe and a 3 percent slump in North America, according to London-based World Markets Research Center.

"The automotive future of China is very bright and we are participating fully in its growth," Ford said in Beijing. "The purpose of the additional investment is so that we can bring more products to the rapidly expanding market."

Ford, along with its venture partner Chongqing Changan Automobile Co., plans to triple production at their Chongqing plant to 150,000 units a year, Ford said. It also plans to improve technology and introduce new models in China, the company said.

Ford's factory was designed to make as many as 50,000 Mondeos and Fiestas a year. The world's second-biggest carmaker said it wants to boost production to capture vehicle sales in China, which are forecast to triple to 5.8 million units by 2010, according to McKinsey & Co.

The announcement comes as the Chinese government reported its economy, the world's sixth-largest, grew 9.1 percent in the third quarter, a faster pace than its 6.7 percent expansion in the second quarter.

Rapid Expansion
"Every carmaker is expanding in China because the car market grows at an average 50 percent every month," said Gu Qun, who tracks carmakers at Automotive Resources Asia Ltd., an industry con******t, in Shanghai. "It makes sense to expand."

General Motors said in July it will share a 2 billion yuan ($242 million) investment with its partner Shanghai Automotive Industry Corp. to quadruple production to 400,000 units by 2007. Volkswagen, which counts China as its biggest sales market after Germany, said in July it will invest 6 billion euros ($6.8 billion) in the next five years to double production to 1.6 million units.

Toyota has set aside 45 billion yen ($381 million) to expand production in China to 400,000 units by 2010, and wants to capture 10 percent of the country's car market by then.

Ford started making cars in China in January, four years after General Motors started making Buick cars in Shanghai. Volkswagen, which makes two out of five cars on Chinese roads, started producing vehicles in Shanghai in 1985.

Fiesta
The Fiesta, which comes with either a 1.3-liter or a 1.6- liter engine, ranges from 88,800 yuan ($10,730) to 127,800 yuan. The cheapest Fiesta is less expensive than the Buick Sail, General Motor's comparable product in China. The Fiesta also competes with Volkswagen's Polo, Honda Motor Co.'s Fit and Toyota's Vios.

Ford invested $49 million with Chongqing Changan Automobile Co. to build a factory near the Yangtze River. In contrast, General Motors and its Chinese partner spent a combined $1.6 billion on their first venture in China.

The Chongqing factory employs 800 people in a plant that includes a body shop for welding car parts, a paint shop and an assembly building. The plant is capable of making as many as four models at the same time, Dale Jones, Ford Motor (China) Ltd.'s marketing vice president, said earlier this year.
__________________
Stacy94PGT
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.

My next Ford.....
Stacy94PGT is offline   Reply With Quote
Sponsored Links
Advertisement
 
Old 10-18-2003, 04:52   #2 (permalink)
Registered User
 
Stacy94PGT's Avatar
 
Join Date: Feb 2001
Location: The Hills of North Georgia,USA
Posts: 7,859
Re: Asia:Ford to invest up to $1.5 billion in China expansion

Ford to construct 2 plants to build Chinese market

October 18, 2003
FREE PRESS STAFF and NEWS SERVICES

BEIJING -- In a move underscoring the emergence of China's auto industry, Ford Motor Co. announced Friday it would spend more than $1 billion to increase its production in China from the current 20,000 units to 150,000.

Ford and its Changan Automobile Group partner said they would build a second manufacturing plant along with a new engine plant. Details are to be announced later.

"I can think of no better way to celebrate our centennial year than by announcing plans for expansion," Ford Chairman and CEO Bill Ford said. "The automotive future of China is very bright, and we are participating fully in its growth."

In January 2003, Ford's plant in the western city of Chongqing launched the Ford Fiesta, Ford's first domestically produced car in China. In May, a second Ford passenger car model, the Ford Mondeo, was introduced.

"The rapid growth of the Chinese economy can be attributed directly to the forward-looking policies of the government and to the increasing well-being of the Chinese consumer," Ford said. "I came to Asia to see directly for myself the dynamic growth that is occurring.

"China, at present the second-largest automotive market in Asia and potentially the largest in the world within the next generation, is the logical place to conclude what has been for me a most successful trip."

Ford was a relatively late arrival in China, beginning auto production in 1997, and is trying to catch up with U.S., German and Japanese rivals.

Germany's Volkswagen AG makes 880,000 vehicles a year in China and recently announced a multibillion-dollar expansion to double that in coming years. General Motors Corp. recently stepped up its manufacturing capacity in China to 200,000 cars per year, the Asian Wall Street Journal reports.

"They need to expand to catch up with other automakers," Mei Luwu, an analyst at Penhua Fund Management in the southern Chinese city of Shenzhen, told Bloomberg News. "But they'd better bring in more up-to-date models, as General Motors have done, instead of introducing old ones."

Ford's announcement comes as the Chinese government reported its economy, the world's sixth-largest, grew 9.1 percent in the third quarter, a faster pace than its 6.7-percent expansion in the second quarter.

Car sales in China smashed the million-unit barrier last year and are expected to rise to some two million sedans this year. But analysts warn that too much expansion could cause a serious glut that will erode margins.

"Every carmaker is expanding in China because the car market grows at an average 50 percent every month," said Gu Qun, who tracks carmakers at Automotive Resources Asia Ltd., an industry con******t, in Shanghai. "It makes sense to expand."

General Motors said in July it will share a 2-billion yuan ($242-million) investment with its partner Shanghai Automotive Industry Corp. to quadruple production to 400,000 units by 2007. Volkswagen, which counts China as its biggest sales market after Germany, said in July it will invest 6 billion euros ($6.8 billion) in the next five years to double production to 1.6 million units.

Toyota Motor Corp. has set aside 45 billion yen ($381 million) to expand production in China to 400,000 units by 2010 and wants to capture 10 percent of the country's car market by then.

Ford is a 50-50 partner with Changan in their joint venture. Ford also owns a 30-percent stake in Jianling Motor Corp. in the southern province of Jiangxi, through which it has produced the Transit delivery van since 1997.

Ford also has six smaller joint ventures producing auto parts and components. Its financing company, Ford Credit,has opened an office to prepare for the opening of the auto financing business to foreign companies.

During an earlier visit to Thailand, Ford announced the company and its Japanese affiliate Mazda Motor Corp. would invest $540 million in their joint venture plant in Thailand.

That would expand the capacity of its joint venture plant, Auto Alliance Thailand, to 200,000 vehicles per year from the current 135,000.

Bill Ford, whose company posted a smaller-than-expected quarterly net loss of a cent a share Thursday, said he intends to make and sell a full range of luxury cars in China but declined to give a timeframe. Its brands include Lincoln, Mercury, Land Rover, Volvo, Jaguar and Aston Martin.

"Of course, trees don't grow to the sky, and someday the growth will actually start to slow down, but I do think this is going to be for a long time a very dynamic market," Ford said.

As a U.S.-based investor in China, Ford said exchange rate stability is important. American business and labor groups have asked the Bush administration to pressure China into revaluing its yuan currency, also known as the renminbi.

"We deal with exchange rates all around the world," he said. "The one thing that really hurts us is big swings in currencies."
__________________
Stacy94PGT
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.

My next Ford.....
Stacy94PGT is offline   Reply With Quote
Sponsored Links
Advertisement
 
Reply

  Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Strong Mazda Turnaround Continues RPO83 Mazda Forum 0 11-01-2002 05:32
Ford: We'll slash another $1 billion Stacy94PGT Ford Worldwide News 0 10-22-2002 07:50
World's automakers recatch 'China fever' at Beijing auto show Stacy94PGT Ford Worldwide News 0 06-13-2002 08:58
Vrooom! Oz cars now a top 10 export Falchoon The Pub 2 06-11-2002 21:57
Bill has 103 billion reasons to smile... Falchoon The Pub 6 03-01-2002 17:26

Powered by vBadvanced CMPS v3.2.2

All times are GMT -7. The time now is 08:51.



Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0
Garage Plus vBulletin Plugins by Drive Thru Online, Inc.