Ford considering manufacturing luxury cars in China - WSJ

AFX News Limited

January 7, 2004

SHANGHAI (AFX-ASIA) - Ford Motor Co and its Premier Automotive Group unit plan to decide in about a year whether or not to manufacture luxury brand cars in China, the Wall Street Journal reported.

The report cited Nick Scheele, Ford's president and chief operating officer, as saying that a decision to begin Chinese manufacturing operations for Premier autos, whose brands include Land Rover and Jaguar, is "on our agenda."

Any move will come as part of the auto giant's expansion of its manufacturing capacity in China, which will involve investment of up to 1.5 bln usd, the report said.

Auto companies, both foreign and domestic, have been rapidly beefing up their presence in China to meet growing demand, despite widespread concerns that supply will massively exceed demand in the coming years.

Ford said in October that it will boost capacity at its Chongqing plant to 150,000 vehicles from the current 20,000, with the costs to be split with its Chinese partner Changan Automobile Group.

david.wilder@afxasia.com

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