Ford $ 500 million expansion plans confirmed

The $500 million expansion plans lined up by Ford India has been confirmed as on track by the company which reiterated that the financial problems faced by the parent company has not affected the operations of the Indian arm.

According to the company, it has always been a favourite among car enthusiasts in India and no prospective car buyer in India has said no to a Ford car just because the parent company is facing some financial problems. This also meant that the company is not also looking at upping its corporate brand spend in India.

However, company officials have clarified that if needed, it would never hesitate to spend more. The car maker, which has been readying itself for he small car launch, has said that it will roll out in 2010. The small car is currently is being designed and developed in Ford’s research centre in Australia.

With the $500 million expansion plan on the table, Ford India plans to roll out a range of models, apart from the small car that is being readied. The company is also planning to double the capacity of the Maraimalainagar plant, near Chennai, to 200,000 units and set up a low displacement engine and transmission plant with a capacity of 250,000 units.

Sales at Ford were hit largely this year mainly due to the credit squeeze caused by the economic downturn in the US. Ford is not the only auto maker to have been badly hit by the economic recession in the US. Having sold around 26,000 units till October this year, Ford India is expected to close the year with sales of 30,000 units, down from last year’s 36,000.

India has seen major success for the Ford SUV named Endeavour, by posting the highest sales in October 2008 as against other SUVs in the market. With market dominating torque, performance and fuel efficiency with class-leading driving qualities and comfort, Endeavor currently boasts of a market share of 27.65 per cent, said sources.