Ford and CFMA Continue to Expand in Chongqing

Alan Mulally, president and CEO, Ford Motor Company, speaks at the ground breaking ceremony in Chongqing

Ford President and CEO Alan Mulally breaks ground for a new state-of-the-art manufacturing facility in Chongqing, the company’s largest global manufacturing location outside southeast Michigan
The $600 million U.S. (RMB 3.8 billion) investment will expand capacity in Chongqing by 250,000 passenger vehicles annually with the flexibility to produce up to seven different models
Changan Ford Mazda Automobile (CFMA) and the Municipality of Chongqing today signed a letter of intent to explore expanding the research and engineering capacity of CFMA

CHONGQING, China, Aug. 27, 2012 – As part of its most rapid expansion in a half-century, Ford and its joint venture Changan Ford Mazda Automobile (CFMA) today break ground at a third assembly plant in Chongqing, China. CFMA has also signed a letter of intent with the Municipality of Chongqing to explore expanding its research and engineering capability in Chongqing.

Ford and CFMA are investing approximately $600 million U.S.(RMB 3.8 billion) to build the “Chongqing 3” assembly plant, as they continue to ramp up capacity to meet growing demand in the world’s largest auto market. Chongqing 3 will have the capacity to produce 250,000 vehicles annually. CFMA is also expanding the capacity of its “Chongqing 2” assembly plant by 100,000 vehicles, for a total capacity increase in Chongqing of 350,000 vehicles.

“This expansion will allow us to continue to serve our Chinese customers with the very best in vehicle quality, green technology, safety and smart design as we bring 15 new vehicles to China by 2015,” said Alan Mulally, president and CEO, Ford Motor Company, at the event. “To meet continued demand in China, we are doubling the number of assembly plants and doubling our production capacity. This reinforces the great, long-term partnership we have with Changan and the city of Chongqing. Ford is also pleased that CFMA is expanding its research and engineering capacity.

Joining Mulally for the groundbreaking ceremony are Chongqing Mayor Huang Qifan; Joe Hinrichs, president, Ford Asia Pacific and Africa; Dave Schoch, chairman and CEO, Ford Motor China; Changan Automotive Chairman Xiu Liuping; and CFMA President Marin Burela, among others.

In his remarks at the event, Mulally detailed some of Ford’s achievements in China since his last visit one year ago, including:

Announcing new assembly plants in Chongqing and Hangzhou
Unveiling a new SUV lineup for China, which includes the Ford Kuga, EcoSport, Edge and Explorer
Launching the all-new Ford Focus
Launching its fuel-efficient EcoBoost engine in the Ford Mondeo
Introducing a Mandarin version of its voice-activated vehicle connectivity technology SYNC
Through its investment in Jiangling Motors, acquiring heavy truck maker Taiyuan

Chongqing is the largest global manufacturing location for Ford outside southeast Michigan. CFMA already operates two assembly plants in Chongqing, with another engine plant and a transmission plant under construction. Ford has five manufacturing facilities in China that are currently operational, and together with its partners, it is building five more.

The first vehicle is expected to come off the line at Chongqing 3 in late 2014.

“Today we are laying the foundation and adding the capacity to bring more high-quality, safe, fuel-efficient, fun-to-drive vehicles from our global portfolio that Chinese customers want and value,” said Ford Motor China’s Schoch. “We have an incredible team of hard-working men and women at Ford and CFMA who go further every day to help realize our aggressive plans and delight our customers.”

Ford will introduce 15 new vehicles and 20 new engines and transmissions in China by 2015 as part of the company’s plan to broaden its product portfolio and powertrain offerings in China.

As part of Ford’s growing SUV lineup in China, Chongqing will be home to the all-new EcoSport and all-new Kuga, both of which were showcased at Auto China 2012 in Beijing in April. Both vehicles are equipped with fuel-efficient and eco-friendly EcoBoost engines.

The facilities at Ford’s Chongqing plants are the most advanced and environmentally friendly in the world, employing technologies that dramatically cut water, chemical and electricity usage, and significantly reduce carbon dioxide emissions. The plants also incorporate global industry best practices to ensure high-quality vehicles are produced efficiently and with minimal environmental impact.

The plants in Chongqing also incorporate Ford’s single manufacturing operating system, designed to improve efficiencies, increase capacity utilization and make the company an industry leader in lowest total cost production. Chongqing 3, like all new Ford manufacturing facilities, will have the flexibility to build up to seven different models.

As Ford brings on new facilities, such as those under construction in China, it is expanding the use of common manufacturing processes and standard systems for tracking material, delivery, maintenance and environmental costs so that new and existing plants are aligned in how they operate. Ford is also making broader use of virtual tools that reduce the cost of new plants and improve the efficiencies of new model changeovers.