Ford to invest additional US$100 million in China plant
Mars Woo | | Mar 10, 2014 05:44 AM EDT |
American multinational automaker Ford Motor Company has announced that it will invest an additional US$100 million in China in order to double its research and engineering capabilities in the country.
Ford said it will increase the number of employees at its research and engineering center in Nanjing to 2,000 within the next four years.
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Part of the plan is to set up a new test tract at its research and engineering center. The test tract will allow Ford's Chinese team to play a large role in global vehicle product development.
Since 2005, when Ford first launched its research and engineering operations in Nanjing, the carmaker has already invested more than US$200 million.
Last January, Ford said its Chinese JVs sold 94,466 vehicles in China. This amounts to a 53 per cent year-on-year growth compared to 61,567 units sold in January 2013.
Sales of passenger cars, including imported cars, surged 63 per cent to 72,598 units for Ford China.
In comparison, passenger car sales in Jan 2013 amounted to 44,439 vehicles.
Overall last year, Ford sold a total of 935,813 vehicles in China, up 49 per cent from 2012.
Meanwhile, for Ford's passenger car JV, Changan Ford Automobile (CAF) witnessed a 62 per cent in wholesale vehicle sales in Jan 2014 to 70,038 units, compared with 43,269 units in Jan 2013.
China is one of the biggest automotive markets and is expected to record strong performance in the coming years. Ford recorded high sales in the nation in recent times but the profit margin was impacted by investments in new factories in the region.
In February, Ford announced its partnership with China Mobile. Under this partnership, Ford's vehicles will feature two popular apps, Lingxi and Fetion, through its SYNC AppLink technology platform. SYNC AppLink will be integrated in Ford Focus and the new Ford Fiesta in China by the end of this year.
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