Ford Motor (F) to Double Capacity in China with New $760M Hangzhou Plant
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Ford Motor Company (NYSE: F) breaks ground today on its new state-of-the-art assembly plant in Hangzhou, which will double production capacity in China to 1.2 million passenger cars annually by 2015.
As part of its largest expansion in 50 years, Ford and its joint venture Changan Ford Mazda Automobile (CFMA) will invest $760 million U.S. (RMB 4.8 billion) in the new plant, bringing Ford's total investment in China to approximately $4.9 billion U.S. since 2006.
The Hangzhou plant will further complement Ford's existing manufacturing base in China. In February, CFMA opened its second assembly plant in Chongqing, which houses a fully integrated facility including stamping, body assembly, paint, trim and final assembly operations.
On Monday, the company broke ground on another new assembly plant in Chongqing, where a new engine plant as well as a transmission plant are also under construction, making Chongqing the largest manufacturing location for Ford outside southeast Michigan. The joint venture with CFMA also has an assembly and an engine plant in Nanjing, China.
As part of its global growth plan, Ford also is rolling out a single manufacturing operating system to drive improved efficiencies, increase capacity utilization and make the company an industry leader in lowest total cost production.
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.
As part of its largest expansion in 50 years, Ford and its joint venture Changan Ford Mazda Automobile (CFMA) will invest $760 million U.S. (RMB 4.8 billion) in the new plant, bringing Ford's total investment in China to approximately $4.9 billion U.S. since 2006.
The Hangzhou plant will further complement Ford's existing manufacturing base in China. In February, CFMA opened its second assembly plant in Chongqing, which houses a fully integrated facility including stamping, body assembly, paint, trim and final assembly operations.
On Monday, the company broke ground on another new assembly plant in Chongqing, where a new engine plant as well as a transmission plant are also under construction, making Chongqing the largest manufacturing location for Ford outside southeast Michigan. The joint venture with CFMA also has an assembly and an engine plant in Nanjing, China.
As part of its global growth plan, Ford also is rolling out a single manufacturing operating system to drive improved efficiencies, increase capacity utilization and make the company an industry leader in lowest total cost production.
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.
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