Ford car manufacturing company is all set to accelerate exports for the small car launch in 2010. According to a top company official, Ford, which presently uses Mumbai Port to route exports, proposes to use Chennai port as its transit point to commence complete exports early next year.

The company has started exporting fully built cars from the Chennai Port and around 170 vehicles are shipped out to South Africa. Michael Boneham, MD Ford India said that, “It is cheaper to ship from Chennai and it is a sensible option for us”.

Late Monday, during an informal media interaction he told that however, access from factory to port and other logistics-related issues still needs improvement.

Ford will be in a position to move all its exports via the Chennai Port by early next year. The company is also thinking to align with the government to consider the use of the Indian Railways to transport its consignments. He said noting that the participation of other manufacturers is vital in this regard, “We are pushing through Siam (Society of Indian Automobile Manufacturers, an apex industry body). We see a big opportunity as besides savings, such a tie-up has to be seen as a traffic reduction strategy”.

Mr Boneham said while giving an update on its new small car project, which is expected to hit the road in early 2010 that, the company foresaw a couple of challenges in entering a segment which it had never been present. He added entering this turf offered a challenge as well as an opportunity, “It is an extremely competitive, price-sensitive and value-conscious segment”.

The small car segment constitutes 70% of the market, "we have not been in this market,” says he. Ford looks India as a key constituent of its global strategy in the small car segment.

A positive outcome from its "marketability clinic" exercise is seen as the brand emerged a competitive one from the cost of ownership perspective, claims Ford. Mr Boneham seeking to explain the multi-faceted aspects like — purchase price, spare parts, fuel economy and schedule of service said, the cost of ownership is a lifetime cost. 

The company looks India as a key manufacturing hub in the Asia Pacific region. He said anticipating massive growth opportunities in this market rather than traditional markets like the US and Australia, “We have taken the beaten road but we have navigated carefully”.

He added that during past 15 months China has proved to be a bigger market than the US. He replied to a query, “Ford has enhanced automation in areas where the processes were difficult. For example, the level of automation in the body shop compares favourably with its other Asia Pacific factories.”

There are also plans to add 20 dealers to Ford’s current network of 93. Over 85% of its vendors contribute to the company’s localization efforts. The company leaving aside previous policy to wait for three years to launch a new model is now planning to frequently introduce newer models. These includes tweaking existing models or bringing in new models.

Ford had not lost a single day’s production, boasts Mr. Boneham on trade unionism raising its head in TN’s automotive corridors. There is no specific us and them," he said, adding the Employees Work Council functioned (not a tribunal) cohesively within the organisation as a unit that reflected the engagement levels between the employer and employees.

Add a comment

Posted by Naresh Koshti on 21 August, 2009 11:59:44 AM IST #