| Ford has announced plans to invest $500 million
to expand its operations in India. The investment will include the expansion
of Ford India's manufacturing plant in Chennai to begin production of
a new small car within the next two years, and construction of a fully
integrated and flexible engine manufacturing plant that will go online
by 2010.
The investment brings Ford's total spending in India to more than
$875 million. In 2007, Ford announced a $500 million investment to build
small cars in Thailand, just weeks after launching production of small
cars at a new $510 million, state-of-the-art facility in Nanjing, China.
John Parker, executive vice president, Asia Pacific and Africa, said,
"This new investment highlights the significance of India's role
in our continued expansion and overall strategy for the Asia Pacific and
Africa region. We've developed a long-term and strategic plan for India
that's anchored on a substantial product program and new engine manufacturing
facility.'
The overall investment plan for India has already started, and will be
implemented in phases over three years. The first phase currently underway
includes the addition of a diesel engine assembly plant at Chennai that
will have an initial annual capacity of 50,000 units. The first engines
are scheduled to roll off the line in April, and will be used in the local
production of the Fiesta and Fusion to satisfy domestic demand.
A significant part of the investment will be for the development of new
product programmes, primarily to expand Chennai and accommodate volume
production of the new small car. Production of the small car is scheduled
within the next two years, increasing annual production at the plant to
200,000 units by 2010.
The second component of the investment plan is a fully-integrated engine
manufacturing facility to be built next to the vehicle plant. This flexible
facility will make both petrol engines and Ford's next generation diesel
engine. Initial annual production capacity is 250,000 units, with first
engines coming off line by 2010. Production at the diesel assembly plant
that's currently being set up will be integrated into the new facility.
The new facilities and capacity expansion will create more than 9,000
jobs – including 1,500 direct and 7,500 indirect jobs – as
Ford India considerably increases its supplier base to meet the expanded
production volumes. This, in turn, will compound additional investment
by its suppliers and vendors and contribute to the overall growth of India's
auto industry.
|
|
