Ford China has started production at its new engine manufacturing factory in Jiangxi province, reports Dow Jones. Ford has invested nearly USD190 million in the facility, which can produce up to 200,000 engines a year. Nearly half of the annual production can be channelled to manufacture turbocharged, fuel-efficient EcoBoost engines. This is Ford's seventh engine plant in China and is the last under the automaker's five-year business plan.
Significance: The opening of the new plant is likely to help the automaker in increasing local content in its vehicles. At the same time, it will help in improving fuel efficiency and bringing down emission levels of Ford vehicles. With the Chinese government setting progressively stricter emission standards to curb pollution levels by 2020, emission levels are expected to play an increasingly crucial role in automakers' planning and strategy amid a cooling automotive market. Despite slowing demand in China, Ford has followed a more conservative approach than rival General Motors (GM), which reduced prices of 40 nameplates in the country. Ford has instead adjusted production but still hopes to register sales growth of 8% year on year (y/y) to 1.3 million units this year in China.
