Big 3 In The Big Country: China - Where the carmakers' money is going
Detroit November 15, 2003; The AP reported that Ford and its Chinese partner plan to boost current production of passenger cars from 20,000 to 150,000 a year. Ford Chairman Bill Ford said last month in China that the automaker would invest more than $1 billion to expand production and build a second plant.
General Motors, trailing Volkswagen, is a market leader for passenger cars in China, but its production facilities are strained by the heavy demand. GM plans to boost capacity by 50 percent by 2006, raising production limits from 510,000 to 766,000 units. The world's top automaker has about 10,000 employees in China and operates five joint ventures, totaling more than $2 billion in investment.
GM will start offering Cadillacs in China next year. It already sells Buicks, Chevrolet Blazers and mini-trucks and minivans under the Wuling brand name.
DaimlerChrysler is the parent company of Beijing Jeep, China's oldest automotive joint venture, dating to 1983. Beijing Jeep has posted big losses in recent years, unable to harness the surging demand for autos to its outdated product line.
DaimlerChrysler will invest about $1.1 billion in new production and begin offering Chinese-made Mercedes-Benz sedans starting in 2005.