Ford to Build $500 Million Engine Plant in Chongqing

Ford Motor Co.’s China venture Changan Ford Mazda Automobile Co. signed an agreement with the Chongqing municipal government to spend $500 million to build an engine plant in the western Chinese city of Chongqing.

The planned plant will more than double Ford’s existing engine capacity in China, according to an e-mailed statement from the company.

The engine factory will be Changan Ford Mazda Automobile’s second and will add capacity of 400,000 units, according to the statement. The plant will mainly supply the venture’s vehicle- assembly lines in Chongqing, it said.

Construction will begin next year and engine production will start in 2013, Ford said in the statement.

Changan Ford Mazda Automobile is a venture between Chongqing Changan Automobile Co., Ford and Mazda Motor Corp.

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