Ford's engine JV at Nanjing commences production

US automaker Ford Motor company has announced the commencement of volume production at its new engine production three-way joint venture facility, Changan Ford Mazda Engine Company Ltd. (CFME), in Nanjing, China.

The $312.5 million facility is a three-way joint venture between Ford, Mazda and China's Changan Automotive Group, with Changan holding a 50 per cent share and Ford Motor Company and Mazda Motor Company holding 25 per cent each.

The company says the first BZ series engines rolled off the production line at CFME, representing the latest strategic deployment by Ford to enhance its competitiveness and continue its rapid expansion in the world''s fastest growing major automotive market.

CFME is said to be one of the largest and most modern engine manufacturing plants in China, with a massive 350,000-unit annual production capacity that will supply production operations for Ford and Mazda vehicles in China. The state-of-the-art manufacturing facility consists of three major plants for casting, machining, and assembly. Five key components of the motor are being manufactured on-site, including the cylinder block, cylinder head, crankshaft, camshaft, and connecting rod.

"CFME represents a critical progression in Ford Motor Company's long-term vision and growth strategy for the China market, and keeps us on track to becoming one of the key players in the world's second largest automotive market," said Mei-Wei Cheng, chairman and CEO of Ford Motor (China) Ltd.

"This world-class facility and its state-of-the-art production technologies will push the industry benchmark higher in China, and help bolster the future development and expansion of Ford Motor Company and our partners in the China market," commented Cheng.

Executives representing the three CFME partners signed a joint venture agreement in April 2005, and then five months later broke ground for the plant, which is located in Nanjing's Jiang Ning Economic and Technological Development Zone.

CFME's BZ series engine is one of the world's finest engines, embodying the latest engine designs and manufacturing techniques from Mazda. The BZ series engine adopts a modern aluminum cylinder head and block, intake VCT (variable cam timing), plastic intake manifold, TSCV (tumble swirl control valve), and multi-point electronic fuel injection. All of these features significantly improve engine performance, adding more power and better fuel economy, reducing exhaust and noise, as well as exceeding Chinese government standards.

CFME expects to introduce additional Ford and Mazda engine series into production as its future volume utilisation expands.

Ford's association with China goes back to 1913, when it sold the first Model T in Shanghai. In 2001, a joint venture was formed with Changan Automotive Corporation Ltd., called Changan Ford Automobile Corporation Ltd. (Changan Ford). With an investment from Mazda in March 2006, the company was restructured and renamed Changan Ford Mazda Automobile Co., Ltd. (CFMA). Changan Ford Mazda Automobile's second passenger car plant in Nanjing is scheduled to go online before the end of 2007.

Additionally, Ford owns a 30 per cent share of Jiangling Motors Corporation Ltd., which produces the Ford Transit commercial vehicle.