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Ford Join Venture

Date: Apr 19, 2005
Contributor: Christian Suriel


Ford sets up new China engine joint venture with Mazda, Changan Auto

US auto giant Ford Motor Co. said it has formed a joint venture with Japan's Mazda Motor Corp and China's Changan Automotive Group to build an engine plant in the eastern city of Nanjing.

The new project, named Changan Ford Mazda Engine Co., is scheduled to be operational by 2007 and will have an initial capacity of 350,000 engines annually, it said in a statement.

The plant is part of a one billion dollar investment plan announced by Ford and its partners in October 2003.

Initially the factory will supply engines to the partners' nearby vehicle assembly facility, which is under construction, although the plant is designed to support longer-term growth plans for all three companies.

Government approvals are required before construction can start, the Detroit-based manufacturer added.

Construction of the adjacent joint-venture vehicle assembly plant was approved in January.

It will have an initial capacity of 169,000 vehicles a year but can be quickly expanded to meet market demand, Ford said, adding that engines built at the plant will exceed the Chinese government's efficiency requirements.



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