Ford to spend $1.8B on China research and development

October 12, 2015

Ford has announced plans to spend the equivalent of $1.8 billion USD on research-and-development initiatives in China.

The US automaker will use the funds to help explore urban mobility projects, connectivity improvements and autonomous technologies, all geared for the needs of Chinese customers.

The company suggests there are will soon be more than a million Sync-equipped vehicles on the roads in China. Drivers in the country also like to use their mobile phones while driving, particularly when stuck in traffic.

In China, Ford’s upcoming Sync 3 infotainment system is said to be the first in-car connectivity solution to support Tencent’s Chelian app, providing access to popular local services such as the QQ messaging app and real-time traffic conditions.

“QQ is China’s largest social-media platform, with more than 840 million active user accounts,” said Ford Motor China chief John Lawler. “As the first in-car system compatible with Tencent’s Chelian app, SYNC is uniquely positioned to become part of the lives of Chinese consumers who want to stay in touch while on the road.”

Ford has partnered with Dida, China’s leading carpooling service, to engage urban residents in Beijing and Shanghai. A pilot project has already served more than 170,000 travelers and accumulated nearly 1.6 million miles.

The automaker is expanding its urban-focused programs to include streamlined vehicle service and online vehicle purchasing via business-to-consumer sales platform Tmail.com.

The company expects “new energy vehicles” (NEVs) to experience sustained growth in the world’s largest automobile market, where customers focus on reducing fuel bills and government regulators work to mitigate emissions. Starting in 2016, the C-Max Energi plug-in hybrid and Mondeo hybrid will complement Ford’s existing lineup.

The company suggests the hybrids and wider availability of EcoBoost engines will reduce average individual fuel consumption of its China-market vehicles by more than 53 gallons annually by the end of the decade.

Many of the new projects will be managed from Ford’s Nanjing Research and Engineering Center, established in 2007, and the upcoming Nanjing Test Center that is currently under construction.

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