[wilful]

(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

[benbsb29]

Link to related thread :

http://www.team-bhp.com/forum/intern...oyota-too.html

[hellmet]

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.

[wilful]

Originally Posted by hellmet

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.

[deetjohn]

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.

[libranof1987]

Originally Posted by deetjohn

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.

[deetjohn]

Originally Posted by libranof1987

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.