Ford Fiesta Derivative Launch In 99
Mahindra Ford is to bring an all-new Fiesta derivative to the Indian market by the end of 1999. The car will be launched on November 24, 1999 and will be made at the companys manufacturing facility near Chennai.
The car, as yet unnamed, will be positioned between the Maruti Zen and the Ford Escort. Keith Elliot, vice president, manufacturing, was only willing to say that the car, when it is finally launched, will be very competitive. We will be hard to beat both in terms of quality and cost, he added.
The new car will have a 70 per cent local content but this is expected to go up to 75 per cent by the time of the launch. Only critical engine components will be imported, although the company has not ruled out the possibility of an engine shop at a later stage.
The 50:50 joint venture company between the Ford Motor Company and Mahindra and Mahindra (M&M) has expanded equity by Rs 220 crore, as the project implementation has gained momentum.
From the original equity of Rs 160 crore, the company has raised equity capital to Rs 380 crore, with each partner bringing in Rs 110 crore in the last couple of weeks.
The equity expansion comes at a time when more funds will be needed by the company to install machinery and equipment. The expanded equity will help us leverage better and raise funds in the debt market, senior company officials said.
The debt-equity of the company is expected to be maintained at around the 1:1.5 level.
To get the right car in terms of price, size and quality for the country, the company had delayed the initial launch by a year. Originally, it may be recalled, the company had announced that it would be introducing the Fiesta (European model) by the end of the current year.
The Mahindra Ford facility coming up at Maraimalai Nagar, a suburb 45 km south of the city, will have a press shop, body-building plant and paint shop.
The press shop is being designed by Schuler, Brazil, while Durr (Germany), which has done 70 per cent of Fords paint shops worldwide, has been roped in for the Chennai plant. Equipment for the body building plant will come from Western Atlas, a UK-based company. The total built-up area of the plant, when completed, will be 80,000 square metres and will be made up of steel instead of concrete to provide for flexibility and expansion of operations at a short notice.
All key equipment for the press shop has arrived and they are being installed at the site. Work at the paint shop is scheduled to be completed by the end of the year.
The paint shop is being equipped to paint cars in seven different colours at the same time. The colours for the cars in India and the frequency of change in colours will depend on market surveys the company plans to conduct from time to time.
Paints for the cars will come from Goodlass Nerolac.