Ford's Second Manufacturing Joint Venture Inaugurates In China

SHANGHAI - September 25, 2007:

Ford Motor Co announced the opening of its latest joint-venture (JV) vehicle manufacturing facility in China's eastern city of Nanjing yesterday, according to the state-owned Xinhua newswire.

The second factory of the Detroit carmaker's joint venture with its Japanese unit Mazda Motor Co and Chang'an Motor Corp will start to assemble a Mazda 2 subcompact, also known as the Demio, from 30 October and a Ford small-sized model next year.

Yin Jiaxu, chairman of Changan Ford Mazda Automobile, Alan Mulally, president and chief executive officer of Ford as well as Mazda president and CEO Hisakazu Imaki have participated in the opening ceremony.

Alan Mulally, CEO & President, Ford

"This new state-of-the-art facility will significantly increase our capacity in China and allow us to continue our rapid growth in the market," said Alan Mulally.

According to the report from Xinhua, the to-be-produced Mazda2 will be priced at 80,000 yuan to 100,000 yuan ($10,600-$13,200) and will compete with rivals including Peugeot206, Citroen C3, Fit and Polo.

Mazda has specifically developed the Mazda2 model that will be produced at the Nanjing plant to accommodate the Chinese market, the report, citing a company official from Mazda, said.

The Nanjing plant will have an annual capacity of 160,000 units and use Mazda¡¯s production system. It will give the firm a total capacity in the country of 410,000 units per annum (upa). The plant will help Mazda achieve its annual sales target of 300,000 units in China, one of its mid-term goals to be achieved by 2010.

The first factory established by the same three partners is located in the city of Chongqing, and builds the Focus, S-Max, and Mondeo, as well as the Volvo S40 and the Mazda3 models.

Sales of Ford increased 29 percent for the first eight months of this year with total retail sales of 114,702 vehicles, Ford said earlier this month.

For more information about the burgeoning auto industry in China please visit http://www.gasgoo.com/Autobiz/list/7/China-News.html