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Pacific Diesel

Friday, April 9th, 2010

Pacific Diesel

Ford to Expand Indian Operations

Dearborn automaker Ford is in the middle of implementing its turnaround plan. With market shares constantly decreasing, the automaker needs to find a way to get back into the race in the auto industry. Although the United States auto market is the most important auto market today, Ford is not neglecting its operations outside the country.

Recently, The Auto Channel reported that the automaker has earmarked $500 million to expand its presence in the exponentially growing Indian auto market. This announcement by the company reaffirms its commitment to growth in the said Asian country. One of the areas that Ford is focusing on is the increased output of their auto assembly plant in India. Part of the budget for their Indian operation expansion will go to the expansion of their Chennai auto assembly plant.

John Parker, the company’s executive vice president for Asia Pacific and Africa, had this to say according to The Auto Channel: "This new investment highlights the significance of India's role in our continued expansion and overall strategy for the Asia Pacific and Africa region. We've developed a long-term and strategic plan for India that's anchored on a substantial product program and new engine manufacturing facility."

The automaker has already started their expansion of Indian operation. The said mission is expected to take three years but in that tome frame, Ford will be reaping the benefits of the changes that they will make in India. The first phase of the mission is to create a Diesel Engine assembly plant in Chennai. With the increased demand for diesel engines both in India and in the United States, Ford is making sure that they will be in a position to provide consumers with what they are looking for.

Apart from that, the earmarked budget will also be allocated for the development of a low-cost car. Although the Indian auto market is growing, Indian car buyers are still looking for low-priced vehicles. With the automaker allocating budget for that endeavor, they are in place to mass produce small and low-cost vehicles for the Indian auto market.

Arvind Mathew, president and managing director of Ford India, said: "Ford India's small car will be a worthy addition to the already successful and robust product mix that we offer to Indian consumers, and will further strengthen our competitive position in this increasingly dynamic market."

"Our investment plan clearly signals Ford's intent to implement an aggressive and comprehensive growth strategy for the India market. Reaching volume production of vehicles and engines will not only allow us to participate in the future growth of India's auto industry, but really to help drive it, both in terms of domestic sale and export potential," added Matthew. The automaker is sure to manufacture more vehicles and Auto Parts as reliable as Acura body parts.

About the Author

Anthony Fontanelle is a 35-year-old automotive buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.