Ford begins work onnew automobile unit

Ford Motor Co began work on a third Chinese car plant as it strives to challenge General Motors Co and Volkswagen AG in a country set to pass the US as the world's biggest auto market.

The $490-million plant will make revamped Focus cars when it opens in 2012, Ford Chief Executive Officer Alan Mulally said on Friday at a ground-breaking ceremony in Chongqing, southwestern China. The factory, which will be able to make 150,000 vehicles a year, will boost Ford's overall car capacity in the country to 600,000.

Mulally attended the event after also visiting India this week as Ford steps up investments in emerging markets that have withstood the slump in global auto sales. China vehicle sales may rise 28 percent this year, according to the government.