“Our investment plans have not changed," a Ford India spokesperson said. The 500 million dollar investment plans for India from Ford Motor Company remain on track as the company promises to keep up its India operations. However, the company spokesperson did not elaborate on how the company plans to fund the investments. The statement comes from the company after the US Senate shot down a 14 billion dollar rescue package of the Big Three – GM, Chrysler and Ford.
Ford India had earlier this year announced 500 million dollar investment to expand operations. It intends to add capacity to the existing facility in Chennai for manufacturing a new small car. It also plans to set up a fully integrated and flexible engine manufacturing facility to produce petrol and next generation diesel engines for domestic and export markets. The annual production capacity of the plant will be expanded to 200,000 units by 2010 when the company commences production of its small cars in two years.