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Ford is trying to catch up with rivals who have been in China longer and command a bigger share of sales. It opened a new vehicle assembly plant in Chongqing in February, one of four new factories due to begin operations by the end of next year. The company already has two assembly plants and an engine plant in operation there. Like many other automakers, it is banking on the potential for growth in sales in China's vast hinterland, where most families have yet to buy their first cars and demand is expected to soar with rising incomes. The company chose Hangzhou -- a base for Chinese independent automaker and Volvo Cars owner Geely Holding Group
-- partly because the city offered a good location and also because it could offer Ford a manufacturing license, Hinrichs said. Due to the rapid growth of manufacturing capacity, the government is now limiting the issuance of production licenses. "Now rules require that if a joint venture is expanding capacity outside its original location a license of another facility has to be canceled," he said. Despite a sharp slowdown in sales after years of torrid growth, Hinrichs said that like other global automakers Ford is benefiting from a preference among Chinese car buyers for foreign brands. "Any imbalance of demand and supply in the industry ultimately affects everybody," he said. But he added: "We watch the industry dynamics very carefully but we're very bullish on where consumers are and the interests of Ford."
[Associated
Press;
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