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Ford Investing Another $500 Million In India |
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The giant automobile company of the world, Ford Motors Co. has recently announced that it is going to invest a huge amount of around $500 million in India for doubling its production capacity in the country. The company officials have informed that the investment would be made within the next few years and the company is also planning to launch a small and inexpensive automobile for the burgeoning middle class of India.
The sources from the Indian automotive industry are informing that the company has made the announcement regarding the investment in the middle part of the month of January and this investment has increased the total financial commitment of Ford to more than $875 million. The company did make the commitment to its operations in South Asian nation and the sources said that the investment also underscores the company`s increased emphasis on the emerging markets, especially India. The Dearborn-based Ford Motors Co. has already identified India as one of its strategic production hubs for the small cars in its Asia Pacific and Africa region.
While talking about the investment, the Executive Vice President For Asia Pacific and Africa of Ford, Mr. John Parker 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". He added, "We`ve developed a long-term and strategic plan for India that`s anchored on a substantial product program and new engine manufacturing facility". Mr. Parker also said that the India-based subsidiary of the company named the Ford India Pvt. Ltd, would increase the production capacity in its plants in the southern Indian state of Tamil Nadu to 250,000 engines and 200,000 small cars annually from the current 50,000 engines and 100,000 cars.
The company executives have also stated that it has already began the overall investment plan and it will implement the plan gradually over the next three years. They said that a substantial portion of the investment will be spent for the development of new product programs, mainly to expand the Chennai plant and accommodate the production of the new compact car. The Ford India is yet to unveil the car and the production of the vehicle is scheduled to begin within the next two years. The President And Managing Director of Ford India, Mr. Arvind Mathew said in this regard, "Ford India`s small car will be a worthy addition to the already successful and robust product mix that we offer to Indian consumers, and will further strengthen our competitive position in this increasingly dynamic market".
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