Ford and Yuejin Motors to Form Joint Venture to Manufacture Engines

22 October 1997
Ford and Yuejin Motors to Form Joint Venture to Manufacture Engines

    NEW YORK, Oct. 22 -- Ford Motor Company and Yuejin
Motors Group Corporation (YMGC) today announced an agreement to form a 150,000
unit per year engine manufacturing joint venture in Nanjing, China.
    The new 50/50 joint venture will manufacture multivalve engines in the
range of 1.8- to 2.3-liters that will initially be used in the various models
of vehicles currently manufactured by YMGC, one of China's pioneer vehicle
manufacturers.
    "This agreement will allow us to offer our customers in China clean and
extremely flexible world-class engine technology with good performance and
fuel economy," said Vaughn Koshkarian, president, Ford Motor (China) Ltd., and
a corporate vice president of Ford.
    "We are very pleased to be partners with YMGC in this venture which will
extend the participation of both companies in the China market," said Wayne
Booker, vice chairman, Ford Motor Company.  "For Ford, it will be our sixth
component venture in China and our seventh automotive venture."
    In addition to the manufacturing facilities, the JV will form a Technical
Development Center (TDC) for engine localization and development.  Training
programs associated with the TDC will seek to establish local capacity.  Total
investment in this joint venture is estimated at US$250 million over the next
few years.
    "Ford's global and technical leadership, when paired with YMGC's local
market and manufacturing expertise, will propel our joint venture toward
success," said Mr. Huang Xiaoping, president, Yuejin Motors Group Corporation.
"This will not only benefit YMGC, but the Chinese automotive industry as a
whole."
    "This joint venture along with the Technical Development Center is clear
evidence of Ford's commitment to the Chinese people for the long term," said
William Clay Ford, Jr., chairman, Finance Committee, Ford Motor Company.
    YMGC is presently the largest light-duty manufacturer in China and is
based in Jiangsu Province in the city of Nanjing -- 150 miles northwest of
Shanghai.  Yuejin Motors initially was called Nanjing Auto Works (NAW) and
produced its first vehicle in March 1958, making it the oldest light
commercial vehicle manufacturer in China.  YMGC has 24 company-owned core
plants and employs 20,000 workers.
    Ford is the second largest industrial corporation in the world, with
manufacturing facilities in 29 countries and sales in more than 200 markets.
In addition to cars and trucks, Ford is also engaged in a number of other
businesses, including automotive components, financial services and vehicle
rental.  In China, Ford's story dates back to 1913 when the company began
selling Model T cars.  Ford's cooperation with the Chinese automotive industry
has developed significantly over the past several years and now includes five
component ventures and a 20 percent share of Jiangling Motors Corporation.  In
December, Ford and Jiangling will begin production of the Transit in Jiangxi
Province, China.

SOURCE  Ford Motor Company