Chongqing, China Ford and Chinese partner, Changan Ford Mazda Automobile Ltd., plan to build a $500 million engine plant in China.
They signed a memorandum of understanding with the city of Chongqing on Saturday.
Construction is to begin next year with engine production starting in 2013. The plant can make 400,000 engines annually; more than double the partnership’s existing engine capacity in China.
The partnership operates two assembly plants in China, including one in Chongqing. It is building a third to produce the Ford Focus.