Ford Opens $500 Million Engine Plant in China

SHANGHAI--Ford Motor Co. (F) on Wednesday opened a $500 million new engine plant in China, more than doubling its engine production capacity in the country to meet rapidly growing demand for its vehicles.

"The 1.5 and 1.0 liter engines produced will help power Ford's continued growth here in the world's largest automotive market," Alan Mulally, Ford's president and chief executive, said in a statement.

The move comes as Ford plans to accelerate its growth in China, with the company targeting to double its production capacity in the country to 1.2 million vehicles by 2015, making this its most rapid expansion anywhere in 50 years

The new engine plant is based in the southwestern city of Chongqing, where its joint venture Changan Ford Automobile Ltd. is headquartered. Changan Ford produces engines for Ford in China. The new plant has an initial capacity of 400,000 units, and when combined with Changan Ford's production capacity of 350,000 units, more than doubles the overall capacity.

Ford will initially manufacture two engines at the plant: a 1.5-liter naturally aspirated four-cylinder engine, and the company's award-winning 1.0-liter three-cylinder EcoBoost engine. The engines will help support its plan to introduce 15 new vehicles in China by 2015, said the company.

Write to Rose Yu at rose.yu@dowjones.com

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June 19, 2013 06:25 ET (10:25 GMT)

Copyright (c) 2013 Dow Jones & Company, Inc.

Source: http://www.euroinvestor.com/news/2013/06/19/ford-opens-500-million-engine-plant-in-china/12378520

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