Ford's cost-cutting strategy: To export vehicles from India for the European market

Ford Motor Co expects to see more of its vehicles exported from India, Chief Executive Alan Mulally said, as the company looks to build more vehicles using global platforms, or chassis, to cut costs and quicken product development.

Mulally is on a visit to Chennai ahead of the launch of Ford’s EcoSport compact crossover.

Ford plans to export the EcoSport from Chennai for the European market where the vehicle will compete in a growing, but increasingly crowded segment. Its launch is expected in late 2013.

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This year, Ford aims to build more than 85 percent of its volume using nine global platforms.

The Chennai facility is the third of five plants where Ford EcoSport will be manufactured. Currently, the SUV is being produced in Brazil, China,and production would begin in Thailand, Russia, a company statement here said.

Ford India has made USD 142 million investment to produce EcoSport at the facility, which also produces its highly popular hatchback Figo, midsize sedan Classic, premium SUV Endeavour and premium sedan Fiesta.

After having a first hand account at its manufacturing facility today, Ford Motor Company President and CEO Alan Mulally said, “The EcoSport looks fantastic. The Chennai team, together with our supplier partners have done an outstanding job in delivering customers a great looking, fuel efficient,

safe compact utility vehicle, at a very affordable price”.

Ford would produce two million vehicles annually on its B-platform by 2015. As part of the One Ford plan, EcoSport is based on the company’s B-platform.

“The EcoSport is a great example of Ford’s dealership in the global shift to fuel-efficient and functional utility vehicles”, Ford Group,Vice President and President Asia Pacific, David Schoch said.

According to IHS automotive, global small utility vehicle sales grew 154 per cent between 2005 and 2012.

Ford India, President and Managing Director Joginder Singh, said,“we are on the verge of something exciting for Ford India. As you know the next game changer for us, and we believe it is not only a game changer for Ford in India, but we are going to set a new standard in the industry as well.”

“As you know, our shipments have begun and our dealers are accepting bookings as we speak.so, we see a very clear milestone in the launch of Ecosport.”, he told reporters.

PTI