Apr. 6, 2012 (China Knowledge) - Ford Motor Co, the second-largest car company in the U.S., has announced plans to more than double its China output capacity and sales to over 1.3 million vehicles by the end of the 2020.
According to the plans, the auto maker will spend US$600 million to expand passenger-vehicle output capacity in Chongqing by 350,000 vehicles to about 770,000 vehicles per year by 2014, said Joe Hinrichs, Ford's president for Asia-Pacific and Africa, adding that it would make Chongqing the firm's largest global manufacturing location outside Southeast Michigan.
Hinrichs added that China's annual demand for vehicles will likely reach 30 million units by the end of 2020. Last year, the country's vehicle sales totaled around 18 million units.
Dave Schoch, head of Ford China, has joined officials from Chinese partner Chongqing Changan Automobile Co Ltd<000625><200625> to start the same capacity expansion plans in Chongqing, said a spokesperson, adding that the expansion has received government approval.
In Nanchang, Jiangxi Province, Ford and Chongqing Changan expect to have an annual output capacity of 1.3 million vehicles by 2014, sources reported.