Investor News

NANJING, China, Sept. 24, 2007 - Ford Motor Company's China joint venture, Changan Ford Mazda Automobile (CFMA), today officially launched operations at its new state-of-the-art manufacturing facility in Nanjing, China, where it will produce the latest small-car models for both the Ford and Mazda brands. The US$510 million flexible and scalable facility has an initial capacity of 160,000 vehicles per year, boosting Ford's total annual passenger car capacity in China to more than 410,000 vehicles. The new small-car plant is located in Nanjing's Jiangning Economic and Technological Development Zone - adjacent to the recently launched Changan Ford Mazda Engine Company.

During a formal ceremony in Nanjing, Ford Motor Company president & CEO, Alan Mulally, Mazda president CEO, Hisakazu Imaki and China South Industry Group president Xu Bin joined local Chinese government officials to inaugurate the new plant, and review its highly flexible and automated facilities, and advanced environmentally-friendly processes.

"Integrating, leveraging and growing Ford worldwide is one of our top priorities, and our China strategy is certainly a key component to making this happen. This new state-of-the-art facility will significantly increase our capacity in China, and allow us to continue our rapid growth in the market," explained Mulally.

"Working together with our JV partners at Changan Ford Mazda Automobile and Changan Ford Mazda Engine (CFME), we'll continue to build and introduce the types of vehicle that Chinese customers really want, and are demanding," added Mulally.

CFMA is well known in China for its high quality cars, and after several years of considerable expansion, made its way into China's top 10 passenger-car makers in April. Ford has been one of the fastest growing brands in China, recording a whopping 87 percent increase in sales between 2005 and 2006, and a further 29 percent increase through the first eight months of this year, with total retail sales of 114,702 vehicles.

With the inauguration of the Nanjing plant, CFMA will be able to offer a more diversified range of products for different market segments – including small cars, mid-sized and full-sized sedans. CFMA’s first vehicle assembly plant in Chongqing currently produces the Ford Focus, Ford Mondeo, Ford S-MAX, Volvo S40 and Mazda3, and has an annual capacity of 250,000 vehicles.

The new Nanjing plant utilizes the latest auto manufacturing technologies and automation equipment. A maximum of eight models with different chassis can be simultaneously produced on the plant's advanced and highly flexible production lines, maximizing production speed and efficiency.

The primary assembly station can freely change the side-enclosure jig to suit any of the eight different car models without suspending the operation. The plant also uses the most advanced flexible welding mainline in the world - the welding of the main structure of the car is all robotic. Using the assembly inspection tool and quality control method introduced from Japan, the size of the enclosure jig can be adjusted and controlled to ensure the quality of the car body.

The stamping workshop has two fully-enclosed automated production lines, performing demolition cutting, top-and-bottom paint application and intermediary transmission. It is also equipped with the most advanced and effective automatic horizontal-bar conveyor systems.

All 45 critical components are manufactured in-house, ensuring high-quality and precision measurements of the car body. The plant also utilizes the most advanced torque monitoring and logistics delivery systems currently available in China, making it one of the country's most modern auto manufacturing facilities.

"The new Nanjing facility employs the latest automated technologies to ensure quality, efficiency and environmental protection, demonstrating our commitment to the further development of world-class operations in China," said Mei-Wei Cheng, chairman and CEO of Ford China Ltd.

An advanced 3C1B (3-coat, 1-bake) environmentally-friendly paint process will also be used for the first time in China, which is compliant with European standards and provides a 15 percent reduction in CO2 emissions and 44 percent reduction in particulate (VOC) emissions.

The process, which can reduce equipment and production cost, is currently the most environmentally-friendly surface-paint coating technique employed in China. It uses internationally advanced processes known as electrophoresis groove and reverse-flow water circulation methods, which can eliminate close to 100% of the particles.