Ford signs MoU with Tamil Nadu

Sources said company would invest around Rs 5,000 crore in the state

Ford Motor Company today confirmed new investment dedicated towards expanding operations in Tamil Nadu. Sources said that the company would invest around Rs 5,000 crore, however company did not confirm it.

The company did not disclose the investment, which will be additional to previous recent investment in India of $2 billion, this new investment will be dedicated towards future capacity expansion at the Ford Chennai Plant and the establishment of a new global engineering and technology center.

Sources said that the investment could be in the rage of around Rs 5,000 crore over the next 5 years, which the company did not confirm and spokesperson was not available for comment.

Representatives from Ford and the Government of Tamil Nadu signed a memorandum of understanding (MoU) at Global Investor Meet, paving the way for a Ford campus across 28 acres land.

"India is at the center of innovation at Ford and we are delighted to strengthen our presence with a new global engineering and technology center," said Dave Schoch, president of Ford Asia Pacific. "This is the next chapter of our India journey. With these latest investments, we are making rapid progress in our vision of driving innovation from India to the world.

Besides the establishment of a global engineering and technology center, the new Ford campus will host operations of Ford Global Business Services in areas of IT, Product Engineering, Finance and Accounting, Data Analytics, Manufacturing among others.

Spread over 300 acres, the Ford Chennai plant presently has an installed annual capacity to produce 200,000 vehicles and 340,000 engines. Ford Operations in Tamil Nadu also include Global Business Services, with offices in Chennai, and Coimbatore.

Ford in March 2015 expanded its manufacturing presence and inaugurated its latest, state-of-the-art integrated vehicle assembly and engine manufacturing plant in Sanand, Gujarat. The $1-billion facility in Gujarat is producing Ford's recently introduced Aspire sedan and soon-to-be-launched new Figo hatchback.

With manufacturing facilities at Sanand and Chennai, Ford is already showcasing India's manufacturing prowess at a global scale. Vehicles and engines made at these two plants are exported world-over with plans afoot to sell Made-in-India products to as many as 50 countries across the globe.

Ford currently employs 14,000 hard-working, dedicated men and women across its manufacturing and global business services operations across India. Ford India also provides indirect employment with its sales and service network to 341 touch points across 186 cities, of which more than 40 percent are located in tier 2-4 markets.