Ford has changed its plans for India. Instead of building a second Ford plant there, it now intends to expand its powertrain facility further in Chennai. Ford will be investing $72 million for the expansion of the plant that’s expected to be completed in the middle of 2012.
The production capacity of this engine plant will increase from 250,000 to 330,000 units annually. This stands for 80,000 diesel engines more each year.
Ford will transform the facility into a foremost global export and manufacturing hub for the following engines: 1.6 TiVCT, 1.4 HC and Duratorq engines. Michael Boneham, president and managing director of Ford India, said that the investment enhances the significance of its Chennai plant as well as Ford's persistent expansion in India.
Boneham added that this expansion will enable Ford to offer more advanced and fuel-efficient engines to the markets in India and throughout the world where Chennai-built vehicles are exported.
The costs to expanding its diesel engine production capacity will mean that Ford’s total investment in India now totals to over US$1 billion.
Boneham said that the new investment is supportive of Ford’s plan to launch eight new global Ford models in India by 2015. He said that when this expansion is done, Ford will add a third production shift at the engine assembly plant that will create over 300 direct jobs.