FORD CONSIDERS DESIGNING NEW FIESTA IN INDIA

Global automobile companies Mercedes and BMW have been gungho on the government’s ‘Make in India’ initiative. Now, American carmaker Ford is giving Indian automobile manufacturing a new dimension — its India subsidiary is considering designing a new vehicle in the country.

The move will make Ford the first global automobile major to design a vehicle here. Typically, global carmakers with a manufacturing base in India collaborate with their global research teams.

Ford, it is learnt, will design the new Fiesta (to replace the existing one) at its research and development and engineering facilities in Chennai. The product, which will cater to the domestic and export markets, is expected to be launched in 2017.

When asked about the plans, Ford India President Nigel Harris said, “I can’t confirm or deny it. We are not talking about it. We will tell you all about it next year.”

Last month, the company had said it would enhance investment in India for capacity expansion at the Chennai plant and the establishment of a new global engineering and technology centre. “India is at the centre of innovation at Ford and we are delighted to strengthen our presence with a new global engineering and technology centre,” Dave Schoch, president of Ford AsiaPacific, had said. “With these latest investments, we are making rapid progress in our vision of driving innovation from India to the world.”

Besides the engineering and technology centre, the new Ford campus will also host operations of Ford Global Business Services in the areas of IT, product engineering, data analytics and manufacturing, among others.

“This reflects the level of confidence global automakers have in Indian capabilities. Until now, India was known for manufacturing excellence and lowcost sourcing. A move by global automakers such as Ford to use India as their design centre will certainly enhance the nation’s ranking in global automobile manufacturing,” said Amit Kaushik, country head (India) at JATO Dynamics, a UK-based automotive research firm.

With two manufacturing facilities in India, Sanand and Chennai, Ford is already showcasing Indian automobile manufacturing at a global scale by exporting about 60 per cent of the vehicles produced. Vehicles and engines made at these plants are exported to 45 countries, and the list continues to expand.