The Economy

Ford Laying the Foundation for its $1 Billion Factory in India

March 23, 2012

The facility will have the capacity to produce 240,000 vehicles and 270,000 engines per year for Indian customers and for export markets, according to the automaker.

Josh Cable

Ford Motor Co. (IW 500/6 ) said construction is underway at the site of its future "state-of-the-art integrated manufacturing facility" in Sanand, India.

During a ceremony on Thursday, Ford's India subsidiary laid the foundation stone in what will be the paint shop of its new factory, which the automaker expects to finish in 2014.

The facility will have the capacity to produce 240,000 Ford vehicles and 270,000 engines per year for Indian customers and for export markets, the company noted.

"With this new state-of-the-art Ford Integrated Manufacturing Facility for Sanand, we are committed to significantly increasing our manufacturing output and aggressively expanding our business in India," said Michael Boneham, Ford India's president and managing director.

Situated on a 460-acre site, the integrated plant will support stamping, body assembly, paint, trim and final assembly, the automaker noted.

Ford India manufactures and distributes vehicles such as the Ford Figo at its integrated manufacturing facilities in Maraimalai Nagar, near Chennai. Including its automotive operations, engineering, accounting, IT and other support services, the automaker has 10,000 employees in India.

Ford said it has invested $2 billion in its operations in India, and the automaker expects that number to grow with its new factory in Sanand.

Ford has said that it will launch eight new vehicles in India by the middle of the decade, beginning with the new Fiesta, which it launched in July 2011.

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About the Author

Josh Cable | Former Senior Editor

Former Senior Editor Josh Cable covered innovation issues -- including trends and best practices in R&D, process improvement and product development. He also reported on the best practices of the most successful companies and executives in the world of transportation manufacturing, which encompasses the aerospace, automotive, rail and shipbuilding sectors.

Josh also led the IndustryWeek Manufacturing Hall of Fame, IW’s annual tribute to the most influential executives and thought leaders in U.S. manufacturing history.

Before joining IndustryWeek, Josh was the editor-in-chief of Penton Media’s Government Product News and Government Procurement. He also was an award-winning beat reporter for several small newspapers in Northeast Ohio.

Josh received his BFA in creative writing from Bowling Green University, and continued his professional development through course-work at Ohio University and Cuyahoga Community College.

A lifelong resident of the Buckeye State, Josh currently lives in the Tremont neighborhood of Cleveland. When the weather cooperates, you’ll find him riding his bike to work, exercising his green thumb in the backyard or playing ultimate Frisbee.