Ford along with its Chinese partner Chongqing Changan Automobile is planning to invest $1.08bn to buy a plant owned by Chinese automaker Harbin Hafei Automobile.
Changan Ford Automobile, a joint venture between Ford and its Chinese partner will buy the plant from Harbin Hafei Automobile Industry, a subsidiary of China Changan Automobile Group.
Wall Street Journal cited a Ford spokesman as saying that factory will manufacture Ford-branded passenger cars, and the total investment is likely to include the cost of labor over an unspecified time, capital expenditures, product and other expenses that will not be tied directly to the factory.
The move comes following rise in demand for foreign branded cars in the country, as domestic automaker, SAIC Motor highlighted that its its joint ventures with Volkswagen and General Motors turned out to be the bestsellers in the Chinese market.
However, despite the slowing economic growth in China, foreign automakers are investing and adding capacity in the country due to the higher demand of their brands in the country.
