Ford, Mazda, China partner increase outlays in engine plant
Ford Motor Co., Mazda Motor Corp. and their China partner have agreed to invest an additional $37.3 million in their engine plant venture to keep pace with surging sales of Ford cars.
Ford, Mazda and Chongqing Changan Automobile Co. will increase their investment in the engine plant in Chongqing city, the venture said in a statement on Wednesday.
The amount of each partner's investment will match its share of the joint venture. Ford and Mazda each hold a 25 percent share, while Changan holds 50 percent.
The plant produces engines for cars including the Ford J53 and J36 models, an official at Chongqing Changan Automobile said.
The engine venture, which also produces engines for Mazda models, probably will shut some old production lines following the latest investment, the official added.
Ford Motor's China car sales have risen in recent months as consumers shun Japanese brands because of a lingering territorial row between China and Japan. The dispute has benefited other foreign automakers, too.
Ford's October vehicle sales in China jumped 48 percent from a year earlier, outpacing a 5.3 percent gain in the country's overall market, according to company data.
The Focus model, launched in late April, has sold so well that workers at Ford's Chongqing car plant in southwest China have added shifts to keep up with demand, said company spokesman Trevor Hale.
The investment in the engine plant may be one of the last made by the joint venture. Ford has gotten government permission to dissolve its three-way joint venture.
Instead, Ford and Mazda each will form a two-way joint venture with Changan.
The amount of each partner's investment will match its share of the joint venture. Ford and Mazda each hold a 25 percent share, while Changan holds 50 percent.
The plant produces engines for cars including the Ford J53 and J36 models, an official at Chongqing Changan Automobile said.
The engine venture, which also produces engines for Mazda models, probably will shut some old production lines following the latest investment, the official added.
Ford Motor's China car sales have risen in recent months as consumers shun Japanese brands because of a lingering territorial row between China and Japan. The dispute has benefited other foreign automakers, too.
Ford's October vehicle sales in China jumped 48 percent from a year earlier, outpacing a 5.3 percent gain in the country's overall market, according to company data.
The Focus model, launched in late April, has sold so well that workers at Ford's Chongqing car plant in southwest China have added shifts to keep up with demand, said company spokesman Trevor Hale.
The investment in the engine plant may be one of the last made by the joint venture. Ford has gotten government permission to dissolve its three-way joint venture.
Instead, Ford and Mazda each will form a two-way joint venture with Changan.
