Ford and its local partner will announce plans this week to build a third plant in China, where the US-based auto-maker is triving to catch up with its rivals, state media reported this week.
The new factory, in the southwestern city of Chongqing, is expected to have an initial capacity of 100,000 units a year, and this may eventually be increased to 300,000 units, the official Xinhua News Agency said without citing a source.
Ford now producess sedans, including the Focus and the Fiesta, in China through Changan Ford Mazda, a joint venture with Chongqing Changan Automobile and Japan's Mazda Motor.
Officials at Ford and Chongqing Changan declined to comment on the reports.
The new plant's construction will begin tomorrow, with operations likely to start by the end of next year, Chongqing Changan Automobile general manager Zhang Baolin was quoted as saying by Chinese Web portal Sina.com.
The new plant, which would add to the US gian'ts existing two in Chongqing and eastern China's Nanjing city will focus on production of high-end sedans and sport-utility vehicles, the Xinhau report said.
The two existing plants have a combined annual capacity of 447,000 units, previous reports said.
Despite the strong Chinese market, Ford's growth here has been slower than its rivals, such as General Motors (GM). Analysts say Ford does not rank among the top 10 car manufacturers in China.
It sold 197,212 vehicles in the first half of the year, up 14 per cent year on year, but the growth was dwarfed by GM, which sold 814,442 units in the same period, up 38 per cent, China's vehicle sales in January outstripped those of the United States for the first time, making the Asian giant the world's largest car market, helped by Beijing's efforts to stimulate domestic consumption.
China's first-half vehicle sales totalled 6.09 million units, up 17.7 per cent year on year, said the China Association of Automobile Manufacturers.
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