Ford to Expand Chinese Engine Plant

Before you go, we thought you'd like these...
Before you go close icon

Ford Motor Co. (NYSE: F) and its partners in a Chinese engine plant will invest an additional $37.3 million to expand the plant's capacity. Mazda Motor Corp. and Chongqing Changan Automobile Co. are Ford's partners in the venture. Ford and Mazda hold 25% each, and Chongqing holds 50%.

The plant makes engines for Ford models sold in China, including the latest model of Ford's Focus subcompact. Ford's sales have grown in recent months, as have those of General Motors Co. (NYSE: GM), Hyundai and BMW, due to the continuing dispute between China and Japan over the Senkaku Islands (or Diaoyu to the Chinese) in the East China Sea. The disagreement has sparked popular protests in China against the Japanese, and Japanese automakers Toyota Motor Corp. (NYSE: TM) and Honda Motor Co. Ltd. (NYSE: HMC) have seen Chinese sales collapse as a result.

Ford sales in China have risen 48% year-to-date compared with last year, far above the new car sales rate of about 5.3% in China as a whole.

The engine plant recently added shifts to the workday to meet demand for the Ford Focus and for some Mazda models.

Paul Ausick


Filed under: 24/7 Wall St. Wire, Autos, China Tagged: F, GM, HMC, TM
Read Full Story

Markets

S&P 500 2,368.06 6.93 0.29%
DJIA 20,728.49 69.17 0.33%
NASDAQ 5,914.34 16.80 0.28%
DAX 12,256.43 53.43 0.44%
NIKKEI 225 19,063.22 -154.26 -0.80%
HANG SENG 24,301.09 -90.96 -0.37%
USD (per EUR) 1.07 -0.01 -0.72%
USD (per CHF) 1.00 0.00 0.42%
JPY (per USD) 111.88 0.73 0.66%
GBP (per USD) 1.25 0.00 0.22%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

This Elephant Was Separated From Her Mother As A Baby - But She's About To Get A Huge This Elephant Was Separated From Her Mother As A Baby - But She's About To Get A Huge
19 of the Creepiest, Most Inexplicable Things People Ever Experienced 19 of the Creepiest, Most Inexplicable Things People Ever Experienced
Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked