Ford will invest $490 million in a plant in Chongqing. It has three passenger car plants in China now.
Ford is well behind market leaders VW and GM, each of which has the advantage of joint ventures with local manufacturers. Ford also has to contend with the fact that a large number of the strongest car companies in Japan, Europe, and South Korea are driving into the market. Each is willing to make substantial investments because China is the world’s largest car and light vehicle market and will produce sales of 18 million vehicles compared to 13 million in the US. The China market is also critical because overall sales in the EU have been hurt by the recession there.
Dave Schoch, had of Ford China said, according to The Wall Street Journal,
The new Chongqing factory, approved in 2009 and operated jointly by Ford and its partners Chongqing Changan Automobile Co. and Japan’s Mazda Motor Corp., is capable of producing 150,000 cars a year and is soon to start production of the redesigned Ford Focus. The car, expected to hit showrooms in China in the second quarter, is one of the 15 new models Ford says it will launch in China by 2015. The plant is large enough for significant expansion in the future. There is so much opportunity” for Ford in China
That does nothing to say how Ford will close a huge gap with the leaders while the compeition in the market grows
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