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Posts Tagged ‘china auto plants’

China Cracking Down on Smaller Automakers

New policies aim to increase production of electric vehicles.

by on Jun.13, 2017

China is looking to increase is EV sales to 30% of all new car sales by 2030 and is using new policies to get there.

China’s top economic planning agency said it plans to tighten regulations for construction of new factories for vehicles using internal combustion engines and gasoline for fuel.

The new rules apparently have two goals. First, they will reduce the potential for the kind of overcapacity that plagues automobile industries in North America, Europe and other parts of Asia such as Japan where sales of new vehicles appear to have peaked as the country’s population ages.

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Additionally, China’s new policies indicates the government wants to cut down on small “zombie” type car and truck makers that have been supported by provincial governments across China and helps promote Chinese efforts to promote the wider use of electric vehicles.   (more…)

Ford, GM Implement Expansion Plans in China

Makers invest in plants despite slowing economy.

by on Jan.30, 2015

Shanghai GM invested more than $1 billion in a new plant in China's Hubei province and expanded other facilities in the country.

Despite the fact that China’s economic growth has slowed, General Motors and Ford Motor Co. continue pushing ahead with plans to expand their production footprint there.

Mark Fields, Ford’s chief executive officer, told analysts this week thatFord expects the Chinese economy to grow by 7% to 7.5%, which is ample enough to sustain an increase in sales of new vehicles. Ford expects sales to come in at between 24 million and 26 million units and the automaker, with its Chinese partner, is moving ahead with plans to open two new factories in China this year.

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Ford plans to open both an assembly plant and an engine plant in China this year. Ford sales in China grew 19% in 2014 to 1.1 million units and helped maintain the profitability of Ford overall operations in the Asia Pacific region despite losses in other parts of the region. (more…)

Volkswagen Investing $2.7 Billion in China

Two new plants add to plans for $27 billion investment.

by on Jul.07, 2014

VW will launch the e-Golf and an assortment of other battery-based vehicles in China.

Volkswagen stoked the competitive fires today in the race to become the top auto brand in China by announcing plans to invest $2.7 billion to build two plants in the country.

The investment is in addition to the previously announced plans to plow about $27 billion into the country by 2018. VW last year nudged past archrival General Motors to become the largest automaker in China.

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“China has become our largest and most important market,” said Prof. Dr. Martin Winterkorn, chairman of VW’s board of management. “To satisfy the demands of our customers in the country, we are engaging in a further substantial expansion of our capacities in China together with our Chinese partner FAW Volkswagen.” (more…)

Jiangling’s New Plant to Make Fords, Subarus

An investment of $300 million will add 300,000 annual capacity to the already booming Chinese market.

by on Jul.20, 2010

A small but potentially importand player in the Chinese comercial vehicle marekt is expanding.

Jiangling Motors Corp (JMC)  broke ground over the weekend for a new $300 million assembly plant in Nanchang, Jiangxi Province, 775 km southwest of Shanghai.

The plant will have the capacity to produce up to 300,000 vehicles per year when it opens in 2012.

Jinagling will make both the Ford Transit and Maverick models (Yihu in China, Escape in U.S.), and a JMC- branded car, the Yusheng.

JMC is 30% owned by Ford.

The company is also said to be in discussions with Subaru to produce the Forrester SUV model in China.
(more…)