Ford increases India investment

today announced plans to invest $500m to expand its

operations.

According to Ford, the new investment will fund several new initiatives, including the expansion of Ford India's current manufacturing facility in Chennai to begin production of a new small car within the next two years, and construction of a fully integrated and flexible engine manufacturing plant that will go online by 2010.

The new investment increases Ford's total financial commitment in India to more than $875m, and is said to underscore its plan to elevate India as one of the strategic production hubs for small cars in the company's Asia Pacific and Africa region. In 2007, Ford announced a $500m investment to build small cars in Thailand. Prior to that, Ford began production of small cars at a new $510m plant in Nanjing, China.

John Parker, executive vice president, Asia Pacific and Africa, said, ‘This new investment highlights the significance of India's role in our continued expansion and overall strategy for the Asia Pacific and Africa region. We've developed a long-term and strategic plan for India that's anchored on a substantial product program and new engine manufacturing facility.’