Ford Motor, Mazda and Chinese Partner Sign Engine Joint Venture Deal

NANJING, China April 19, 2005; The AP reported that Ford Motor Co., Japan's Mazda Motor Corp. and Chinese partner Changan Automotive Group announced a joint venture Tuesday to build a new engine plant in the eastern Chinese city of Nanjing.

The plant will make engines for the auto companies' factories in China, Ford said in a statement.

The venture, named Changan Ford Mazda Engine Co., is still subject to government approval.

The announcement comes just days before the automakers participate in the Shanghai Auto Show. The biennial event showcases China's aspirations to become a major auto exporter, as well as one of the world's biggest vehicle markets.

The new engine plant is part of a more-than US$1 billion (euro770 million) China investment plan announced in October by Ford. The company is one of several foreign automakers pouring billions of dollars (euros) into new spending in China despite signs that growth in auto sales is tapering off.

"This growing Nanjing project is key to our expansion plans in China," said Mark Schulz, Ford Motor Company executive vice president.

Ford's 190,000 square meter (2 million square foot) joint venture auto assembly plant in Nanjing is due to have an initial annual capacity of 160,000 vehicles. The engine plant is to have an annual capacity of 350,000 engines, Ford said.

The engines made by the plant are to be made using the latest technology and will exceed Chinese government fuel efficiency standards, the company said.