Ford settles on second China car production site

Listen to Keith Bradsher, Hong Kong Bureau Chief, New York Times and Author of Recently published updated version of HIGH AND MIGHTY, "Ford Said to Be Planning Assembly Plant in China"

SHANGHAI, Feb 23, 2004; Reuters reported that U.S. auto giant Ford Motor Co is planning to build its second car plant in China in the eastern city of Nanjing, close to the booming metropolis of Shanghai, the company said on Monday.

Ford, a latecomer to the country's galloping auto sector, on Saturday signed a memorandum of understanding to use land at an industrial estate in Nanjing, a three-hour drive from Shanghai.

The company declined to give details on what models the new plant would make or the investment involved, saying the plan was awaiting final approval from the government.

Ford has said it plans to pump up investment in China's car market by more than $1 billion over the next few years, competing with established rivals like General Motors Corp and Volkswagen AG.

Ford said last year it would expand output seven-fold at its joint venture with Chongqing Changan Automobile Co Ltd as well as build a second plant.