- BEIJING (Reuters) - U.S.
auto giant Ford Motor Co F.N said on Friday it would boost investment by
more than $1 billion over the next few years as part of ambitious expansion
plans in the world's fastest-expanding major car market.
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- "The automotive future of China is very bright and
we are participating fully in its growth. I am pleased to reaffirm our
long-term plans for China," chief executive officer Bill Ford told
reporters on his first trip to China.
-
- Production at its joint venture Chongqing Changan Automobile
Co Ltd 200625.SZ 000625.SZ would rise to 150,000 units from a current 20,000,
as part of an expansion that would include a second car plant and engine
plant. He did not give a time frame.
-
- Ford, a relative latecomer to the Chinese market, launched
its first Fiesta car to much fanfare in January this year.
-
- But it entered a segment already dominated by Volkswagen
AG VOWG.DE , which already controls more than a third of the market, and
arch-rival General Motors Corp GM.N , which commands about eight percent.
-
- Ford and GM have been slugging it out at home but are
now taking their battle to the mainland. Ford is now fleshing out its offerings
in China with luxury sedans and sport-utility vehicles.
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- Car sales in China smashed the one million-unit barrier
last year. But analysts warn that unfettered capacity expansions could
foment a serious glut that will erode margins.
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