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Old 23rd September 2014, 11:14   #1
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Default Major share of Ford Australia cars to be made in India

(Mods - I am not sure if this merits a new thread - could not find another one to post in. Please merge if required)

India appears to figure importantly in Ford's global plans as a manufacturing hub. A very large percentage of their cars in sold Australia will be made in India.
The new plant in Sanad, Gujarat will boost Ford India's capacity greatly. This will surely be a shot in the arm for India as a production base for automobiles.

Ford plans to cease manufacturing operations in Australia by the end of 2016.

http://origin-www.livemint.com/Indus...in.html?ref=ms

http://www.business-standard.com/art...1700968_1.html

Last edited by wilful : 23rd September 2014 at 11:16. Reason: link added
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Old 23rd September 2014, 11:56   #2
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Default re: Major share of Ford Australia cars to be made in India

Link to related thread :

http://www.team-bhp.com/forum/intern...oyota-too.html (Ford to shut plants in Australia. EDIT: Now, Toyota too)
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Old 23rd September 2014, 12:17   #3
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Default Re: Major share of Ford Australia cars to be made in India

No country is "important" for these corporations. We're "important" only as long as we can continue to provide cheap labor and high profit margins, ceasing which another nation becomes "important".

The problem begins when one corporation begins moving out to another nation and others have to do the same to stay in the game and remain competent. This new "global" world is a disaster.
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Old 23rd September 2014, 16:20   #4
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Default Re: Major share of Ford Australia cars to be made in India

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Originally Posted by hellmet View Post
No country is "important" for these corporations. We're "important" only as long as we can continue to provide cheap labor and high profit margins, ceasing which another nation becomes "important".

The problem begins when one corporation begins moving out to another nation and others have to do the same to stay in the game and remain competent. This new "global" world is a disaster.
Labour arbitrage is an important tool to use for progress.
Isn't that how China became an 'important' nation? By leveraging on its strengths ie cheap trained labour - and became the factory for the world? I guess most advantages are time bound and therefore it would be good to make it count when the going is good.
India has done it in software and ITES to become a major player in that field.
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Old 23rd September 2014, 23:26   #5
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Default Re: Major share of Ford Australia cars to be made in India

This is awesome news.
  1. The quality of cars will go up as the vendors will have to scale up for developed markets.
  2. The cost will go down due to economies of scale.
  3. Ford' lineup in Australia is really yummy. Cars like Fiesta hatch, Focus, Mondeo. SUVs like Kuga, Territory etc.
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Old 23rd September 2014, 23:41   #6
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Default Re: Major share of Ford Australia cars to be made in India

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Originally Posted by deetjohn View Post
This is awesome news.
[list=1][*]The quality of cars will go up as the vendors will have to scale up for developed markets. [*]The cost will go down due to economies of scale.
As much as I'd like it, I doubt that'll happen. Ford will most likely maintain two separate supply chains for domestic and export vehicles.

Difference in market regulations, dynamics (w.r.t. competition) and expectation are vastly different so I am skeptical if Ford's Indian offerings will significantly change.
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Old 24th September 2014, 07:37   #7
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Default Re: Major share of Ford Australia cars to be made in India

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Originally Posted by libranof1987 View Post
As much as I'd like it, I doubt that'll happen. Ford will most likely maintain two separate supply chains for domestic and export vehicles.
Yeah, I have seen posts here by folks who are vendors themselves stating MSIL keeps a different standard for export and domestic vehicles. But it doesn't take away the fact that the vendors have to equip themselves to churn better quality products. So, the learning will be there anyways.

And Maruti makes higher volume for domestic market and they then save big with cost cutting. The converse is also true. For example: A-star never picked up that well in the domestic market and there was a perceivable difference in build quality between Maruti' other lower B segment offerings and the A-star. We owned one and it was evident when you compare it to the WagonR or now the Celerio.

And I believe there is some correlation between the higher quality of products from Hyundai for domestic market and the fact that India was their export hub till a while back. And with cars costing more than 10L, it may not make that much sense to have two supply chains. That could be the case for Ford. Let's wait and watch.
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