Ford commits $1.8 billion to randd in China

Ford will invest the amount in research and development (R&D) over next five years. The financial investment in China right here makes good sense, as the capacity for the Chinese market is significant. Ford is planning to introduce new models in the China market soon. By 2020, the company also plans to introduce full electric vehicles to Chinese consumers. The Dearborn, Michigan-based automaker is now ranked No. 5 among global automakers in China, behind GM, Volkswagen, Hyundai and Nissan.

“We see China as a very big growth market”, he said. By focusing specifically on products and consumers in China, Ford hopes to cement its foothold as one of the most popular foreign brands in that market by catering specifically to needs prevalent there. According to the company’s representatives, Ford is targeting the Chinese younger generation for its smart cars.

Automakers are stepping up investment despite a downturn in sales this year. Ford will invest in bringing more of those to Chinese drivers in an affordable way.

The Wall Street Journal adds that Ford is looking to install smart-car systems in China using technology that the company developed and uses in other markets.

The Chinese government is encouraging electric vehicles as part of its Green drive.

The company will spend five years for conducting research on how to increase smart phone connectivity and implement new smart vehicle features to the Chinese cars.

The automaker now has 10 manufacturing facilities in China. “It’s a great opportunity to grow not only our core business of selling cars and trucks but also provide services to people that may not want a vehicle but still want to be mobile”.

The announcement came at a time that growth of China’s vehicle market has stalled amid a cooling economy and local curbs on auto ownership to stem pollution and traffic.