Ford Motor Company (NYSE:F) Motor, Mazda and their partner in China have entered into an agreement to put in an extra $37.3 million in their engine plant scheme. This comes after surging sales of Ford automobiles including its new Focus model.
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The Chinese company said in a statement that Mazda, Ford and Chongqing Changan Automobile will increase their venture in the engine plant based in Chongqing city as per their shareholdings, which are 25%, 25% and 50% respectively.
The plant generates engines for cars including Ford J53 and J36 models, as revealed by a Chongqing Changan official.
Car sales figures of Ford Motor in China have increased in recent months since customer have shun Japanese brands because of a protracted territorial row between Japan and China. The clash has also benefitted other foreign automakers like BMW, Hyundai Motors and General Motors.
Fords vehicle sales in October have shot up 48% from a year earlier. That has outpaced a 5.3% profit in the overall market of the nations.
The Focus model that was launched in later April has been faring pretty well, so much so that employees at Ford’s Chongqing car plant have added shifts to cope up with the demand, as per the Trevor Hale, a spokesman of the Shanghai-based company.
The engine investment also produces engines for Mazda models. It is likely to shut some old production lines following the most recent investment, as told by the Chongqing Changan Automobile official.
Ford’s share price is shooting up +1.20% between $10.80 to $10.98, as of today. The company has managed to generate revenue of $132.40 billion in the past 12 months and for the same span of time the company has earned $17.68 billion. Earnings of 12 irregular months for each month have reached a value of $4.42.