Ford's facility may produce Volvo cars

Taking a cue from heavyweights such as BMW, Mercedes and Audi, Ford Motor Company-owned Volvo Car India may use the parents' India facility in Chennai to manufacture and assemble some of its products, reducing their prices substantially.

While Mercedes started manufacturing its cars in India about a decade ago, BMW and Audi have recently started similar activities.

Volvo Car India, a subsidiary of Volvo Car Corporation, currently sells just two models in the country, namely the XC90 (a sports utility vehicle) and the S80 luxury sedan, both launched in October this year.

"We have limited our focus on just these two models for now. But Volvo has plans to increase its product portfolio starting next year. For that, we will discuss the issue of local production (for India) next year," said Paul de Voijs, managing director, Volvo Car India.

As the company belongs to Ford, Volvo may use the Ford's surplus land in Chennai where its manufacturing facility is set up. As Voijs added, "It would be logical for us to set up our assembly plant inside Ford's complex in Chennai as they already have a full-fledged manufacturing workshop including paint shop, body shop."

Investment details for the project will be discussed at the parent company's meet to be held next year.