Ford Motor Company (NYSE:F) has a joint venture with an entity called Chongqing Changan Automobile Co Ltd. Together the automobile manufacture companies have long drawn out plans to take over a factory located in Northeast China and upgrade it thereafter. The pact has been signed and is worth 6.6 billion yuan, equivalent to $1.1 billion and this information was shared by a Ford Motor Co.’s spokeswoman.
Changan Ford’s Production Plans
The company will work towards increasing Changan Ford’s production by 200,000 vehicles in China on an annualized basis to help duly meet this country demands for growth in passenger vehicles. Claire Li, spokeswoman of Ford, commented that the company is looking forward to long term opportunities for growth and sustenance. Thus, adding passenger vehicles would help the company reach out to thousands of customers across the geographic expanse of this country. Ford Motor Company (NYSE:F) has established factories in Hangzhou located in eastern coast of Yangtze River Delta and Chongqing in Western China.
Changan Ford Has Robust Plans
The factories were operated by a subsidiary unit of the parent company of Chongqing Changan – Harbin Hafei Automobile Group Co. There were a series of issues that led to dysfunction of the subsidiary unit. Thereon, the factory has been totally reformed and now with the pact been signed, it would be used dutifully in the production of a plethora of Changan Ford cars, which are estimated to be manufactured and released for sale by the second half next year. Li corroborated that Ford has robust plans for holistic utilization of the revamped factory to produce the maximum number of cars required at the Chinese parlance and as per the company’s robust plans.
Chinese markets have embraced vehicle sales in large numbers. It is considered as the largest cars manufacturing market in the world. Vehicle sales peaked to 6.9 per cent in 2014. China Association of Automobile Manufacturers conveyed that the vehicle sales are expected to grow at an anticipated rate of 7 per cent this year.