Ford India expansion plans on track

Ford India said that its expansion plans were well on track and the proposed small car would be launched by 2010 as planned.

Mr Michael Boneham president and MD of Ford India while visiting at Ford India's Maraimalai Nagar plant told journalists that the company had already invested a substantial percentage of USD 500 million earmarked for expansion and the remaining was expected to be utilized in the first quarter of next year.

He said that "Around 70% of investments have been utilized. We are expecting the remaining to be utilized by the first quarter of next year.”

Mr Boneham said that the investments would be used for capacity expansion, modernization and launch of the small car adding that the plant, with a current installed capacity of 100,000 cars would be doubled by next year but it might achieve full capacity only after two years.

Mr Boneham said that Ford's global strategy was to launch new models every 12 to 18 months and this would continue in the next three to five years. But he declined to state the cubic capacity of the small car and the price, but hinted it might be named Splash. Mr Boneham said that "We will declare the name and price at the appropriate time.”