Ford India has stated that it would invest about Rs 4,000 crore and entered signed a memorandum of understanding (MoU) with the Gujarat government to construct the facility. The construction of both the plants will begin later this year, with the first vehicle and engine scheduled to come off the line in 2014.
The report quoted Joe Hinrichs, president and chief executive, Ford Asia Pacific and Africa regions as saying "We selected Gujarat because of its pro-business environment, infrastructure, access to ports in northwestern India and skilled workforce. The facilities (will be used for) stamping, body, paint and assembly operations for vehicle manufacturing, as well as machining and assembly operations for engine manufacturing.’’
It was also mentioned that the vehicle manufacturing plant will have an initial annual capacity of 240,000 units, and the engine plant will have an initial annual capacity of 270,000 engines. Gujarat is slowly beginning to be the major automobile investment destination in the country.