Ford will expand its biggest factory complex in China to meet growing demand in the world's largest car market.
The US$600 million ($732 million) expansion will include a new assembly line and body and paint shops at its Chongqing site in southwestern China - Ford's largest manufacturing operation outside the Detroit area.
Ford is trying to catch up with rivals who have been in China longer and command a bigger share of sales.
The expansion will give the car-maker the ability to make 350,000 more vehicles a year, increasing its total to 950,000 by 2014. That will help towards Ford's goal of tripling the models in its Chinese lineup to 15 over the next three years.
Ford opened a new vehicle assembly plant at 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 there.
Like many other car-makers, 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 growing factory complex in Chongqing is part of Ford's plan to boost worldwide sales by nearly 50 per cent by 2015, to about 8 million vehicles a year.
Ford will invest in the factory with joint-venture partner Changan Ford Mazda Automobile Ltd