Ford India to double diesel engine output

Ford India plans to double the output from its diesel engine plant, enabling it to reach the full capacity of 60,000 units a year. The plant, which started production in April, will give Ford India a 20% cost savings and will increase local content in the Fiesta to 85% from 80% and in the Fusion to 60% from 55%, according to Managing Director Michael Boneham. “This engine facility will help position Ford India as a strategic manufacturing hub for low displacement power train engines within our Asia Pacific and Africa region,” he said. Ford India announced a capital expenditure of US$500 million in January for setting up the engine assembly plant and doubling car manufacturing to two lakh (200,000) units per year. For the diesel engine assembly plant the company has developed 25 new suppliers, which constitutes about 50% of the local content. At present the company imports critical components like crankshaft, camshaft, cylinder block, cylinder head and connecting rod and machines the blocks. (May 14, 2008)