Ford Will Expand Crossover Lineup in China

Ford Motor Co., which will have two crossover vehicles in its lineup in China by year-end, tells Reuters it will add two more models in the segment by the end of next year.

The new models include the EcoSport small and Explorer midsize crossover vehicles, according to Joe Hinrichs, president of Ford's Asia-Pacific and Africa unit. The company currently sells the Edge in China and said last week it will add the Kuga (Escape) compact by the end of this year.

Hinrichs says Ford plans to build the EcoSport and Kuga at its expanding complex in Chongqing. The Explorer will be imported from the U.S.

Ford said earlier that it would add 15 models in China by 2015. The company aims to double its annual production capacity in China to 1.5 million units by 2015. Ford has announced two expansion projects within the past three weeks: a $600 million plant in Chongqing to add 350,000 units of annual capacity and a $750 million factory in Hangzhou to will add 250,000 units.

Hinrichs notes that the crossover/SUV segment offers good margins and is expanding quickly. Last year the segment jumped about 25% to 2.1 million units in China, according to J.D. Power and LMC Automotive. Consultants tell Reuters that Chinese consumers like crossovers and SUV for the same reason Americans do: their high seating position and sense of power and safety.