Ford Figo set to hit Indian roads next month

CHENNAI: Before the end of next month, Ford Motor Company’s ‘Figo’ — the sub-B category car — will hit the Indian roads, triggering further

competition in the compact car segment that currently generates over 70% of the country’s total new car sales. Figo, the sixth new Ford model to be introduced by the US automaker, was flagged off by Tamil Nadu chief minister M Karunanidhi on Friday at the Maraimalainagar facilty near Chennai.

Nearly 90% of the $500-million investment by Ford has been completed though there are still some parts to be added in the new 40,000-sq-m flexible engine plant that will quadruple the production capacity to 2.50 lakh engines a year. Incremental investments would be made as and when necessary, Ford vice-president, operations (Asia Pacific and Africa) Raj Nair told reporters.

Remaining non-committal about the price of Figo, Ford India president and MD Michael Boneham said, “it will be very competitive. We will compete with i10 and Swift and others as we are targeting the segment, which accounts for 70% of all new vehicles sold in India.” The definition of small car in India is a “bit different,” he said.

The new engine plant is designed to meet the growing needs of the Indian vehicle market. It is an advanced manufacturing centre that has been created with the world’s best practices for engine manufacturing. Currently, a single production line produces approximately 60,000 diesel engines a year.

The plant, which will produce both diesel (1.4L) and petrol engines (1.2L), has been benchmarked against other competitive facilities globally as well as the current volume manufacturers in India for quality and production efficiency, he said. Seventy-nine percent of the diesel engine parts and 60% of the petrol engine components are produced locally in India. Like the assembly operation for vehicles at Chennai, engine component manufacturers and suppliers are conveniently located for better logistics, Mr Boneham added.

Figo will be produced for domestic and export markets on the new flexible manufacturing line, a first such effort from India. As part of its near-term strategy, Ford is targeting South Africa and Asean regions for exports to sell fully-built Figos.

Mr Boneham said Ford intends to introduce a series of new products to the market in a 12-18 month span. It would take about 5-6 years to reach full capacity, he said, responding to a query. Though it would focus on the compact car segment, it did not necessarily mean that Ford would not look at other segments.

On targeted sales volume, he merely said it would be customers who would determine the volume.

More than 700 employees have been hired by Ford at the expanded assembly and engine plant in the last 12 months. On reaching full capacity, the new centre is expected to generate additional employment.

Incidentally, it was the TN CM who inaugurated Ford plant in March 1999. Thereafter, other major players — Hyundai, BMW, Renault, Nissan — entered and helped to position the state as a favourable automotive destination. Top ten global manufacturing centres are located in TN. Mahindra & Mahindra too has decided to establish their facility here.

Source Indiacar.com Source : Economic Times (2/5/2010)