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Ford plans small car for India
CHENNAI: Ford India Ltd, a wholly-owned subsidiary of Ford Motor Corporation on Tuesday announced that it was expanding its manufacturing capabilities to make a "new small car" for India besides setting up a new engine facility with an investment $500 million.
Addressing a press conference, Arvind Mathew, managing director and president, Ford India said that the new investments would be in the form of fresh equity by the US parent besides some domestic borrowings. "A new plant capable of making engines (both petrol and diesel), with a capacity to make 2.50 lakh engines a year is part of the investment. The engines will be both for Indian vehicles besides exports to other markets. This is the first time that Ford is making diesel engines outside Europe," Mathew added.
The manufacturing capacity at the Chennai car plant would be doubled to two lakh units a year.
A large portion of the fresh capacity would go towards making a "new small car". "We will launch a new small car, as a worthy competitor in the segment in two years time, which will coincide with our expanded capacities coming on stream," he said.
He, however, said that any more talk on the proposed small car would be speculative. Interestingly, Indian operations of Ford would act as a strategic production hub for small cars in Asia Pacific and African markets.
Once the expanded capacities comes on stream, an additional 9000 new jobs would be created of which 1500 jobs would be direct employment. "We now employ 4000 people across our Indian operations," managing director and president Mathew added. Ford's present contract with Hindustan Motors for engine and power train would go in for a change. It now sources components for its mid-sized Ikon, Fiesta besides Fusion.
"After our engine plant gets ready, we will source only power train from Hindustan Motors. As such, the first phase of the engine plant which is 50,000 units a year is currently underway. This would get integrated with the new plant that we are announcing today," Mathew added.
Ford India has seen investments to the tune of $375 million so far and with these additional investment plans, the total investment goes up to the level of $875 million.
Addressing a press conference, Arvind Mathew, managing director and president, Ford India said that the new investments would be in the form of fresh equity by the US parent besides some domestic borrowings. "A new plant capable of making engines (both petrol and diesel), with a capacity to make 2.50 lakh engines a year is part of the investment. The engines will be both for Indian vehicles besides exports to other markets. This is the first time that Ford is making diesel engines outside Europe," Mathew added.
The manufacturing capacity at the Chennai car plant would be doubled to two lakh units a year.
A large portion of the fresh capacity would go towards making a "new small car". "We will launch a new small car, as a worthy competitor in the segment in two years time, which will coincide with our expanded capacities coming on stream," he said.
He, however, said that any more talk on the proposed small car would be speculative. Interestingly, Indian operations of Ford would act as a strategic production hub for small cars in Asia Pacific and African markets.
Once the expanded capacities comes on stream, an additional 9000 new jobs would be created of which 1500 jobs would be direct employment. "We now employ 4000 people across our Indian operations," managing director and president Mathew added. Ford's present contract with Hindustan Motors for engine and power train would go in for a change. It now sources components for its mid-sized Ikon, Fiesta besides Fusion.
"After our engine plant gets ready, we will source only power train from Hindustan Motors. As such, the first phase of the engine plant which is 50,000 units a year is currently underway. This would get integrated with the new plant that we are announcing today," Mathew added.
Ford India has seen investments to the tune of $375 million so far and with these additional investment plans, the total investment goes up to the level of $875 million.
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