With more than $2 billion investment in India, Ford currently employs over 14,000 people across its two plants in Sanand and Chennai, and some of its Global Services Business operations in Coimbatore and Gurgaon.
This ring something to all the unemployed youths out there in Chennai. Yes, US Automobile giant Ford has decided to invest more in India. First being the plant in Sanand, Gujarat where they have invested around 1 billion and here, they have planned to invest around Rs 4000-5000 crore in an R&D centre in Chennai, developments familiar reports.
In an interview, Fields had expressed interest in increasing the product development capability in the country.
“There’s a tremendous engineering talent here, and we want to tap into that and grow our product development capability here methodically over a period of time,” Fields had said. When made contact, a Ford India spokesperson said, “As for future projects and investment, we have nothing to announce.” With this fresh investment, Ford India will be increasing its investment in the country by almost 50% of its cumulative investment so far.
It has been clearly understood after making contacts with the R&D development officials, it is likely to be made in the second half of this year, and the agreement with the Tamil Nadu government is expected to be signed in the next few months.
Post the establishment of the local R&D base, the company’s Ford Technology Services India and Ford Global Business Service operation, which has over 10,000 workforces, will merge into a common organisation.
“With pressure on profitability, achieving faster break-even on projects has become critical for MNC’s, the headquarters know while setting up the R&D infrastructure in the country is a capital intensive activity, but the rewards are multi-fold in the long run. With product life cycle shortening, local R&D not only helps in coming out with new products faster that too at a lower cost led by Indian frugality and the value innovation for India can be easily shared with the global markets too,” says Vangaal.