Ford Motor Co. may soon start shipping engines from India to Europe as well as to other markets as the brand aims to increase exports to utilize its increasing Indian production capacity. If this plan is realized, this would be the first time that Ford’s engines built in India are sent to Europe. By 2015, Ford will be capable of producing 450,000 cars and 600,000 engines in India. Gary Johnson, vice-president, manufacturing, Asia Pacific and Africa, said that the engines will be exported to Europe and maybe even England. No other details were given. When interviewed at an automotive conference in New Delhi, Johnson informed Reuters that if there’s a need in other markets for more engines and they’re capable, then they will be making the shipment.
To build the plants in India, Ford has invested over $2 billion. However, it hasn’t made significant gains in stealing the market share away from its rivals like Hyundai Motor Co. and Maruti Suzuki India, which rule the small car segment. Presently, Ford India exports about 40% of the engines it produces and 25% of the cars it builds to 35 countries.
Michael Boneham, president of Ford India, said that Europe itself has a considerable manufacturing capacity too. He added that its focus is more on shipping the engines, instead of the cars, from India to Europe. Ford has implemented layoffs in Europe, cutting work days and slowing down the speed of assembly lines. Ford said that it expects to lose over $1 billion in Europe in 2012. Ford had lost $1,125 for each vehicle it sold in the region during the second quarter.