Ford, Mazda and Chongqing Changan Automobile will invest $37.3 million more in their engine plant venture in China.
The three automakers decided to invest an additional $37.3 million in the engine plant in Chongqing city, due to Ford’s increasing sales. Ford owns 25% of the JV, Mazda 25% and Chongqing Changan Automobile 50%, and the plant manufactures engines for models including the Ford J53 and the J36. Ford’s increased sales over the past period are due to the fact that Chinese customers shun Japanese brands because of the territorial dispute between the two nations. This brings increased benefits to overseas automakers such as GM, Ford, BMW and Hyundai.
Last month Ford’s sales in China were up 48% compared to the same period last year, surpassing the 5.3% gain in the country’s overall market. The Focus model, launched at the end of April, sold amazingly well and Ford has to add shifts at the Chongqing car plant to be able to meet demand. The plant, which also manufactures engines for Mazda models, will most likely close some of the old production lines after this new investment was made, according to an official at Chongqing Changan Automobile.