Ford to invest in China projects

Ford to invest in China projects

SHANGHAI (Reuter): Ford Motor Co has signed joint venture accords with two Shanghai companies to produce automotive components, moving it closer to its goal of vehicle assembly in China, company officials said.

Ford will invest more than $50 million in the two projects, its first manufacturing ventures on the Chinese mainland.

It will make plastic components, including interior trim, seats, instrument panels and other plastic parts in a 51 percent owned joint venture with

Work will be done in Yan Feng's existing facilities and a new plant will come on stream later this year.

A 51 percent owned venture with

Ford officials declined to give a breakdown of the $50 million investment between the two ventures. The agreements are subject to final approval by the Chinese government.

Ford is studying other joint ventures in areas such as electronics, fuel injection equipment, cooling and air conditioning in line with Beijing's new policy of approving new foreign companies for car assembly provided they first develop a parts and components manufacturing presence in the country.