Ford Motor Corp said yesterday it would invest 220 million yuan (US$27.5 million) to set up an automotive research and development center in China.

The United States' second-largest auto maker said the first phase investment in the R&D and engineering center in Nanjing, Jiangsu Province, would help it supply the auto parts sourcing industry in China as well as provide technology for localized production.

Ford said the long-term plan was to establish the center as a global base for production design and technology innovation on all Ford models and recruit more Chinese engineers.

"Turning global technology capabilities into real competitiveness on the Chinese market will enable us to take a big step forward," Meiwei Cheng, chairman and chief executive officer of Ford Motor China Co Ltd, told reporters in Beijing, on the eve of the 2006 Beijing Autoshow.

The car maker will exhibit more than 52 new models under all its car brands including Ford, Lincoln, Jaguar, Land Rover, Volvo and Mazda at the show.

Ford has been aggressively catching up with General Motors Corp, Volkswagen AG and Toyota Motor Corp by building new factories, increasing sourcing from China as well as outfitting a complete line up with its affiliated brands.

It plans to build its latest S-Max sports utility vehicle in China early next year, expanding its Ford-branded production portfolio from Fiesta, Mondeo, Focus hatchback and Focus sedan.

Ford plans to boost its capacity to more than 400,000 units in China next year after the completion of its second plant in Nanjing in addition to the current Chang'an Ford Mazda Automobile Co Ltd.

China, with an average 25 percent car-sales growth, is playing an important role for Ford to rev up its sales amid sluggish home-market demand.

Sales in the first 10 months grew 101 percent to 127,392 units in China.

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