Ford Motor Co announced on Friday it plans to return to the black in 2011, as it develops sales leads with the fast-growing and profitable China market with view to build a new plant there.
The plant, to be based in the southwestern municipality of Chongqing, will have an initial annual production capacity of 150,000 units, increasing annual capacity at Ford's joint venture plants to 600,000 by 2012, a joint venture statement said.
The U.S. automaker, which competes with General Motors and others globally, produces the Focus, Mondeo and other sedan models in China in a tie-up with Chongqing Changan Automobile Co and Japan's Mazda Motor.
Chief Executive Officer Alan Mulally, attending a ground-breaking ceremony for the new plant opening, said in a statement that Ford intended return to profitability in 2011.He added that Ford expects to have around 16 % market share in its home U.S. market this year.
In July, Ford posted a $2.3 billion quarterly net income, mainly due to gains from a $10 billion debt reduction plan, and said it was on track to at least break even in 2011.
The new plant marks the latest connection for Dearborn, Michigan-based Ford, in China, which surpassed the United States in January to become the world's biggest automobile market.
Ford's announcement of the new China plant comes two days after it unveiled plans to launch a new small car in India, another fast growing market. Reported by Reuters.
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