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Ford to invest 500 million dollars in India to expand operations

Business Materials 19 March 2008 19:47 (UTC +04:00)

(dpa) - US global auto major Ford Motor Company plans to invest an additional investment of 500 million dollars to increase car capacity and manufacture components for foreign markets, reports said Wednesday.

"We have lined up 500 million dollars for our expansion plans in India," said Scott McCormack, Ford India vice-president.

"By 2010, we will ramp up our installed capacity to 250,000 units per annum from 100,000 units currently for rolling out compact cars, new versions of engines and critical components for domestic and overseas consumption," reported news agency IANS.

Ford's Indian subsidiary has invested about 400 million dollars over the last decade for setting up an integrated car manufacturing facility near Chennai in southern state Tamil Nadu to produce high- end models.

With Ford's car sales of 38,000 units in 2007 in India marginally lower at 36,000 units in 2006, the company plans to invest the additional investment to increase capacity utilisation, and by stepping up exports to South Africa, Middle East, and some European countries.

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