皇冠体育app

Mazda, Ford, Chang'an to build new plant
By Gong Zhengzheng (皇冠体育app Daily)
Updated: 2004-07-23 09:36

Japanese carmaker Mazda will join forces with its parent firm Ford Motor in production in 皇冠体育app by jointly building a new plant with the US auto giant's joint venture with Chang'an Motor Corp.

The new plant, to be located in Nanjing, capital city of East 皇冠体育app's Jiangsu Province, will have an annual production capacity of 200,000 cars, Ford Chief Operating Officer Jim Padilla revealed this yesterday when the companies signed a land-use agreement with the local authorities.

The new plant is part of Ford's US$1.5-billion expansion plan in 皇冠体育app which was announced last October in Beijing by company Chairman Bill Ford.

However, the companies have not revealed the size of the investment and specific role of Mazda - 33.4 per cent owned by Ford - in the new plant.

Analysts said that, in order for tripartite co-operation between Mazda, Ford and Chang'an to keep in line with 皇冠体育app's auto industry policy, the US giant will transfer part of its 50 per cent stake in its joint venture with the Chinese firm to the Japanese carmaker.

Foreign automakers are permitted to have a maximum stake of 50 per cent in their joint ventures with Chinese partners, according to the new policy.

Mazda will produce its M3 model at the new plant, according to industry sources.

The collaboration with Mazda is seen as a substantial step by Ford to swiftly expand in 皇冠体育app using all of its brands.

Ford is lagging far behind rivals General Motors and Volkswagen in 皇冠体育app's car market as a result of its late decision to produce locally.

"I ensure that Ford will focus on growing our business in 皇冠体育app," Padilla said.

"Our multiple brands - Ford, Volvo, Jaguar and Land Rover - will also participate in 皇冠体育app side by side, working with Chang'an Ford," he added.

The joint venture Chang'an Ford now has a plant in Southwest 皇冠体育app's Chongqing Municipality, which started production at the beginning of last year.

The venture sold 50,000 cars by the end of June this year, including 30,000 Fiesta compact sedans and 20,000 Mondeo mid-sized sedans.

Padilla said that the Chongqing plant's annual production capacity will also increase to 200,000 cars.

Mazda now has two technical licensing deals with First Automotive Works Corp (FAW), one of 皇冠体育app's biggest automakers, which is producing the Japanese firm's M6 model in northeastern Jilin Province, and the Premacy and Familier on South 皇冠体育app's Hainan Island.

Mazda reportedly plans to establish a car sales company with FAW to market its vehicles produced in 皇冠体育app.

Ford also has a joint venture in East 皇冠体育app's Jiangxi Province, making the Transit commercial wagon.

皇冠体育app remains the world's fastest-growing car market, although growth of vehicle sales in the nation is slowing down.

Total sales of 皇冠体育app-made vehicles grew by 24.25 per cent year-on-year to 2.55 million units during the first half of this year.

The growth was down from 34 per cent last year, with that of passenger cars at 31.59 per cent from 75 per cent.

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