Ford inks $500-mn deal with TN govt

Ford Motor Company today signed an agreement with the Tamil Nadu government for the $500-million expansion programme at its manufacturing facility at Maraimalai Nagar a city suburb.

This would help the company expand its presence in India, paving the way for volume production of the new Ford Figo which was unveiled yesterday in New Delhi, according to Ford India.

The agreement was signed by Ford India President and Managing Director Michael Boneham and the state government’s Principal Secretary (Industries) M F Farooqui, in the presence of state Chief Minister M Karunanidhi and Deputy Chief Minister M K Stalin.

“This agreement symbolises our belief in the strong role India can play in the future of Ford Motor Company,” said Boneham. “After the introduction of the India-engineered and Chennai-manufactured all-new Ford Figo, our expanded investment in Tamil Nadu will benefit the region in the form of expanded employment — both at the plant and among a growing local supply base,” he added.

Ford, which established manufacturing facilities in the state in 1996, has already executed the first phase of transformation at its Maraimalai Nagar plant as a part of the $500-million expansion programme. It is now being readied for volume production of the new Ford Figo.

The final phase of the plant expansion will add a new engine production facility, with a capacity of 250,000. This will convert the Maraimalai Nagar plant into a regional source for small displacement engines, with production catering to demand from both — Indian as well as Ford’s Asia-Pacific and Africa markets. Construction of the engine plant is well underway, with production expected to come on stream in 2010, said Boneham.

The plant’s annual vehicle production capacity will be doubled to 200,000 units after the expansion, which is also expected to create 1,000 new jobs. The manufacturing facility will have 92 new robots and India’s first application of a new eco-friendly painting process, called Three-Wet High-Solids.

The Ford investment in Chennai’s regional development envisions a high degree of localisation and a broader India supply base — boosted by the plant’s new export status and higher vehicle production expectations.