Ford Motor Company plans to ship engines from India to Europe and other markets in a bid to boost exports.
The Detroit-based carmaker is using its expandind Indian manufacturing capacity to satisfy demand from other markets. By 2015, Ford will have the capacity to build 450,000 cars and 600,000 engines. It would be the first time Ford has exported Indian-built engines to Europe.
“From an engine perspective, we’ll be exporting not just to Europe but also to Thailand. If somewhere needs more engines and we’ve got the capability, then we’re going to ship them,” said Gary Johnson, Ford Asia Pacific and Africa vice-president for manufacturing was quoted as saying by Reuters. He did not offer more details.
So far, Ford has invested more than $2 billion to build factories in India, but it failed to win significant market share from competitors such as Hyundai Motor Company and Maruti Suzuki India, which dominate the small car segment. Ford currently exports 40 percent of its Indian-made engines and 25 percent of the cars it builds in India to 35 countries.
Ford announced it will lose more than $1 billion in Europe in 2012, as it lost $1,125 for every vehicle it sold in the region in the second quarter of this year.