Ford's China Plant To Begin Production In 2003.(Brief Article)

Ford Motor Co. said its new car plant in southwestern China will begin production of passenger cars at the beginning of next year. Construction of the $98 million venture between Ford and Chongqing Changan Automobile Co. was ahead of schedule and mass production was likely to start before the April 2003 target, according to a Ford China spokesman.

Ford said last April it would pay $49 million for a 50 percent stake in the venture, which will have an annual capacity of 50,000 cars. Ford has not disclosed the model to be rolled out, but said it would be a high-end small sedan.

Analysts say they expect the car to be priced at about 100,000 yuan ($12,080), within reach of the increasingly rich middle class, and probably based on Ford's Ikon compact.

Ford is a relative latecomer to China's market, which is expected to grow seven to 10 percent this year to 750,000 to 800,000 units. Volkswagen, for example, already have car plants in the country. They and other domestic auto makers are involved in an escalating price war launched to fend off increased competition from imports after China slashed tariffs to comply with commitments for its World Trade Organization entry in December.

Print Get the Mag Weekly Updates