Motor Co. commits to a $75 million expenditure to expand its growing operations in India on the heels of a 2-day visit by CEO Bill Ford.
The money, not specifically earmarked, is said byto represent the company’s plan to continue its commitment to the fledgling market, where sales are projected to grow to 1.15 million units by 2007, 1.45 million by 2009 and 1.62 million by 2010.
“To support the aggressive growth strategy we have in place, Ford India will be augmenting its subscribed capital,” Ford India President Arvind Mathew says in a press release. “Ford India has received approval from Ford Motor Co. for an additional equity infusion of $75 million to meet the needs of our future plans.”
Bill Ford was in India earlier this week for the first public showing of the Fiesta, which is expected to be in showrooms later in the year. It will be the fifth Ford model available in the country, alongside the Ikon, the Endeavor, the Mondeo and the Fusion.
At the Fiesta launch, Bill Ford called India “critical” for the company, according to news reports.
‘‘There is a great potential in outsourcing components from India, and we want to increase this business from India,’’ Bill Ford is quoted as saying in the Indian Express.
Ford India currently has about $375 million invested in facilities and operations, with an assembly plant in Maraimalai Nagar and offices in Chennai, Mumbai and Delhi.
In 2004, Ford India sold 27,064 vehicles.