Ford Spending $1.8 Billion On Tech Development In China

Ford is investing more than a billion dollars into vehicle technology development that is tailored to meet the needs of its owners in China.

Ford has announced they will invest $1.8 billion during the next five years into development of vehicle technology specific to China. Self-driving and infotainment innovations that highlight cellphone use are among those features being researched and developed for use among Chinese Ford owners. Ford is making the investment as auto sales in China were down 3.4 percent year over year for August down to 1.42 million vehicles.

Speaking to the Wall Street Journal, Ford CEO Mark Fields spoke about the China investment saying, “We see China as a very big growth market. 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 car but still want to be mobile.” According to Bloomberg, Ford plans to build a new plant and expand its current facility in the city of Chongqing as part of its China growth plan.

Another method Ford is using to penetrate the market in China is through ride-sharing experimentation. This past September Ford worked in conjunction with Dida Pinche to launch a carpooling service. Ford has reportedly already completed 170,000 rides on this platform.

Ford is investing billions into development of technologically advanced cars in China ahead of its release of its SYNC 3 infotainment system, which is expected to offer a wide-range of hands-free vehicle controls. Do you think the automaker will be able to make significant market share gains in China on the back of this $1.8 billion investment? Do you think the demand in the U.S for small, low emissions, technologically advanced vehicles will continue to grow?