Ford Motor Company Announces U.S. $72 Million Investment to Increase Production Capacity at Chennai Engine Plant

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May 17, 2011, 07:17 ET

CHENNAI, India, May 17, 2011 /PRNewswire/ --

Ford Motor Company to invest US $72 million to expand its powertrain facility in Chennai to support sales and export growth plans in India

The engine plant's production capacity will increase from 250,000 to 330,000 units per year, an additional output of 80,000 diesel engines

Ford to introduce a third production shift at the engine assembly plant, creating more than 300 new direct jobs

Expansion will bring Ford's total investment in India to more than US $1 billion

Ford Motor Company (NYSE: F) will invest US $72 million to expand its powertrain facility in Chennai to further support its sales and export growth plans in India.

When the expansion programme is completed in mid-2012, the engine plant's production capacity will increase from 250,000 to 330,000 units per year, an additional output of 80,000 diesel engines annually.

"This investment reinforces the importance of our Chennai plant and Ford's continued expansion in India," said Michael Boneham, president and managing director of Ford India. "This expansion will allow us to provide more technologically advanced and fuel-efficient engines to our customers in India and in markets around the world where we export Chennai-built vehicles."

The expansion of diesel engine production capacity will bring Ford's total investment in India to more than US$ 1 billion.

"The new investment also further supports our plan to introduce eight new global Ford vehicles in India by 2015," Boneham added. "When the expansion is finished, a third production shift will be added at the engine assembly plant, creating more than 300 new direct jobs."

The new investment is part of Ford India's transformation into a major global export and manufacturing hub - 1.6 TiVCT, 1.4 HC and Duratorq engines will be exported from the country.

The expansion announcement is the latest milestone in a busy and productive year at the Maraimalai Nagar engine plant. In March, plant managers and employees celebrated the 100,000th engine produced at the factory - this significant milestone was achieved just 14 months after the engine plant opened for operations in January 2010.

The plant is the first Ford facility to feature single flexible production line manufacturing petrol and diesel engines. It is also the first Ford plant to run a flexible crank shaft production line producing crank shafts for petrol and diesel engines.

Today, the plant produces five Duratec petrol engine variants and one Duratorq diesel engine variant for Ford vehicles. It is also gearing up to produce powertrains for Ford's all-new global Fiesta sedan, when it is launched in India later this year.

Since June 2010, more than 4,000 India-built 1.4L and 1.6L petrol engines have been exported to Thailand every month. Diesel engines have also been exported to South Africa since 2008 and Ford plans to export India-built petrol and diesel powertrains to more markets in the near future.

About Ford in India

Established in 1995, Ford India is a wholly owned subsidiary of Ford Motor Company, a global automotive industry leader. Ford India manufactures and distributes automobiles and engines made at its modern integrated manufacturing facilities at Maraimalai Nagar, near Chennai. The company's models include the Endeavour, Fiesta Classic and the Figo.

Ford's operations in the country also include Global Business Services, comprised of Ford Business Services Center and Ford Technology Services India. Located in Chennai and Coimbatore, these units support Ford globally in the areas of IT, accounting and finance, financial services and automotive operations support, global analytics and engineering services. Ford's businesses in India employ 10,000 hard-working, dedicated men and women.

For more information, visit www.india.ford.com

SOURCE Ford Motor Company