Ford Motor to expand India operations

[OhioChick]

CHENNAI: In what is seen as a New Year gift to Tamil Nadu, Ford Motor Company has reaffirmed its commitment to India by deciding to invest an additional $500 million (around Rs. 2,000 crore) into its facility at Maraimalai Nagar, near here.

The fresh investment will be primarily used to set up a small car facility, expand the existing production base and establish a fully integrated and flexible engine making plant. With this fresh fund infusion, Ford’s total financial commitment in India has gone up to over $875 million.

The investment plan will be implemented in phases over the next three years.

The first phase of the plan had already commenced and would include the addition of a diesel engine plant at Maraimalai Nagar with an initial annual capacity of 50,000 units. The first engine is expected to roll off the assembly line in April. These will go into the local production of Fiesta and Fusion vehicles.

Addressing a press conference here on Tuesday, Arvind Mathew, President and Managing Director of Ford India, said the fresh investment “clearly signifies that India has become a priority market in Ford’s regional and global strategy.” He said the small car would take around two years to come out of the Maraimalai Nagar facility. “It (small car) will be a worthy addition to the already successful and robust product-mix that we offer to Indian customers,” he said.

The proposed small car, he said, would be smaller than the Fusion. Since things were at a very early stage, Mr. Mathew declined to hazard any further guess on the small car. To a query, he hinted that the proposed small car would have significant indigenous content.

http://www.hindu.com/2008/01/09/stories/2008010953351800.htm