Ford has started its operations at its engine assembly plant in India. It has set up its engine plant near Chennai with an initial capacity of 60,000 units annually. It shall be making 1.4 litre Diesel Duratorq engines for Fusion and Fiesta models. It shall be manufacturing 50,000 diesel engines and 10,000 petrol engines. It shall subsequently expand its capacity to 250,000 engines annually. Initial production of engines shall first cater to the domestic demands and then the surplus would be subsequently exported to other countries.
"This facility will help position Ford India as a strategic manufacturing hub for low displacement powertrain engines within our Asia Pacific and Africa region," said Michael Boneham, president and managing director of Ford India.
Once Ford achieves 50 percent local content in its models, Ford shall gain a competitive edge in the market. It shall not only be able to cater to the market demands quickly, it shall have smoother efficiency in its operations as well. It shall be investing $200 million in the next two years to increase its capacity to 200,000 units annually.
