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Ford Begins Manufacturing in China

2 December 1997

Ford Begins Manufacturing in China

                     'China Transit' Production Underway

    NANCHANG, China, Dec. 1 -- Ford Motor Company ,
along with its joint venture partner, Jiangling Motors Corporation (JMC),
today launched a new jointly-developed product, the "China Transit," for sale
in China.
    The first China Transit, a 12-passenger vehicle, rolled off the assembly
line as Chinese and U.S. government leaders, top executives from JMC and Ford
and other dignitaries participated in the opening ceremony at the Transit
production facility in Nanchang, Jiangxi province.
    "Manufacturing the China Transit marks a major step forward in Ford's
commitment to become a participant in China's domestic automotive industry,"
said Alex Trotman, chairman and chief executive officer, Ford Motor Company.
"This product demonstrates that China can and will have a domestic auto
industry that rivals the best in the world, and the ultimate winner will be
customers in China."
    "We're extremely pleased with the high quality results -- accomplished in
such a short time and in an affordable manner -- that the JMC-Ford partnership
has successfully achieved," said Sun Min, chairman of JMC and president of
Jiangling Motor Company Group.  "This team has effectively designed,
engineered and manufactured a modern product with the latest technology, of
international quality standard that is suited to meet the needs of our
customers in China."
    The China Transit is the first truly jointly-developed, international
standard Sinoforeign vehicle built to suit the specific needs of China's
drivers and roads.  It will be available initially in 12-seat and 9-seat
models.  In 1998, a long wheel base, 15-seater will be launched, followed
shortly thereafter by van and chassis cab versions.  Initially, over 50
percent of the China Transit parts will be manufactured in China, with plans
to increase that to 90 percent.
    Annual capacity at the plant will reach 60,000 units.  The China Transit
will be supported by an extensive China-wide parts and service plan to provide
customers with high quality parts and reliable service through a nationwide
network of trained service technicians in over 60 authorized service centers
at launch.
    "Ford is committed to operating in China and partnering with JMC has
offered both companies the opportunity to blend of technology, experience,
knowledge and talent," said Vaughn Koshkarian, vice president of Ford and
president of Ford China Operations, Ford Motor Company.  "We believe
cooperative efforts such as ours, can provide the basis for greater cultural
understanding, economic cooperation, as well as play a very positive role in
improving the understanding between the people of the U.S. and China."
    JMC is one of China's largest industrial corporations and a leading
producer of light trucks in the country.  Ford is the world's second largest
company and the largest truck manufacturer.  In China, Ford has partnered in
five joint ventures for auto parts manufacturing and recently signed an
agreement to manufacture multi-valve engines in Nanjing, China, starting in
2000.

SOURCE  Ford Motor Company