Manufacturing News

Ford JV in deal to build second China engine plant

Ford Motor said on Saturday its joint venture will build a new engine manufacturing plant in the south-western city of Chongqing at a cost of $500 million to support expansion in the world's largest auto market.

Changan Ford Mazda Automobile signed a memorandum of understanding with the local government to build the engine plant, which will more than double existing capacity and support its vehicle manufacturing facilities, Ford said in a statement.

The joint venture is a three way tie-up between Changan Motors, Ford and Japan's Mazda Motor Corp .

China eclipsed the United States as the world's largest auto market last year and has been a major bright spot as the global industry struggles to recover from a steep downturn.

Construction of the new plant is expected to start this year and production will begin in 2013. The plant, with a capacity of 400,000 engines, will boost capacity to 750,000 engines annually from 350,000 now.

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