Ford Announces New $760 Million U.S. Assembly Plant In Hangzhou, China

Posted Aug 30, 2012

Yesterday Pulse2 wrote about how the Lincoln brand was coming to China, but now we know the full details about Ford’s expansion.  Ford Motor Company has announced a new state-of-the-art assembly plant based in Hangzhou.  This new plan will double production capacity in China to around 1.2 million passenger cars annually by 2015.  This is part of Ford’s largest expansion in the last 50 years.  Ford and their joint venture with Changan Ford Mazda Automobile (CFMA) will lead to a $760 million (RMB 4.8 billion) investment in the new plant.  This brings Ford’s total investment in China to around $4.9 billion since 2006.

“Here in Hangzhou, we are laying the foundation for the future of Ford globally,” stated Ford president and CEO Alan Mulally. “At Ford, our goal is to offer fuel-efficient, high-quality vehicles from our global portfolio that customers in markets like China want and value.  This state-of-the-art facility will help us reach the goal of increasing worldwide sales nearly 50 percent by mid-decade to 8 million vehicles per year.”

The plan in Hangzhou is part of Ford’s full expansion in Asia Pacific and Africa with 9 new plants (7 under construction) planned.  The first vehicle built in Hangzhou will arrive in 2015.  The plant in Hangzhou complements Ford’s existing manufacturing base in China.

This past February CFMA opened a second assembly plant in Chongqing, which has a facility that can perform stamping, body assembly, paint, trim, and final assembly operations.  This makes Chongqing the largest manufacturing location for Ford outside of southeast Michigan.

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