Ford announces new $1 billion plant in India

[Judi Lynn]

Source: Agence France-Presse

Ford announces new $1 billion plant in India
AFP
July 28, 2011, 5:50 pm

NEW DELHI, India (AFP) - US auto giant Ford said Thursday it would invest $1 billion to build a vehicle assembly and engine plant in India as it ramps up production to exploit the country's burgeoning car market.

The new factory in the western state of Gujarat will employ around 5,000 workers and will be the firm's second in India.

"Ford has very aggressive expansion plans in India and in Asia Pacific and Africa," Joe Hinrichs, president of Ford Asia Pacific and Africa, told reporters in a conference call.

This new investment "will be important in realising our growth strategy," Hinrichs said, calling India "one of the most dynamic regions in the world".



Read more: http://nz.news.yahoo.com/a/-/world/9933376/ford-announces-new-1-billion-plant-in-india/

[DesertFlower]

1. what can i say? haven't we sent enough

jobs to india?

[joshcryer]

3. Huh? They're cars for India. It's like Honda building a plant here for cars they sell here.

[iamthebandfanman]

5. cars are heavy, lol ;) n/t

[madokie]

17. How many do you reckon will recognize that

Or will it just keep on sailing over heads

[MineralMan]

22. Erm...did you read the post?

These cars will be built and sold in India. Nothing to do with US jobs.

[freshwest]

66. Where did the billion come from, though? Doesn't matter, I guess.

[sakabatou]

2. Fuck.

[Sherman A1]

4. Charming

simply Charming......:banghead:

[UnrepentantLiberal]

6. So glad we bailed them out. Nice way to say thanks.

[Ikonoklast]

8. Ford was *never* bailed out by anyone.

Management foresaw what was coming, and planned accordingly.

They took *zero* dollars from the Federal Government.

They didn't need to.

[madokie]

18. Correct

When you build a good product you don't have to have hand outs cause people will buy that product

[Volaris]

21. yep, and all the while Chrysler and GM were laughing their fool heads off at the

top guys at Ford, wondering why spend all this money to restructure?... At the Congressional hearings, Ford Motors were asked if you guys need money too, and they got to say "no, thanks, we're ok, but thanks anyway=)", while GM sat there looking like idiots.
Ford hasn't ALWAYS been a great company, but when they DO get it right, DAMN do they get it right. It goes all the way back to the thought that Henry had..."If I pay my workers enough to actually BUY one of the cars they are making for me, they actually WILL, and then EVERYONE gets to be happy."

Henry was no saint by any stretch of the imagination, but dammed if he didn't get the business model right for that one...

[Daninmo]

50. I believe Ford got a $5.9 Billion from the US Government

http://www.thenewamerican.com/index.php/economy/markets-mainmenu-45/1290

[Ikonoklast]

53. Not a bailout.

[cstanleytech]

16. Like Ikonoklast said, Ford wasnt bailed out

it was most of the rest of the major automakers who got bailed out and they like the banks were bailed out for the main reason of trying to prevent a larger economic meltdown than what letting them fail and go under may have caused.

[UnrepentantLiberal]

55. Thanks, Daninmo.

Ford Motor Company was supposed to be the only major U.S. automaker not in need of a bailout, but this week Ford accepted a $5.9 billion loan subsidy under the Energy Independence and Security Act of 2007 (EISA). The EISA loan is designed to help the auto industry by supporting “capital investments in facilities designed to produce vehicles with greater fuel efficiency and reduced emissions.”

[Psephos]

58. That was not a bailout.

It was a government decision to incentivize development of greener automotive tech.

You can argue whether or not it was a good use of government money, but Ford did not "need" it to stay in business.

[Romulox]

42. Reminds me of "Was it over when the Germans bombed Pearl Harbor?"

Shamelessly ignorant! :hi:

[pam4water]

7. WTF WTF WTF

[madrchsod]

9. maybe they`ll build cars better than tata`s death traps...

now if i had only bought ford stock a few years ago...

[Major Hogwash]

10. Which is why the next pickup truck I buy will be made by GM, right here in the US of A

Fuck Ford.

[Ikonoklast]

19. GM has been in China for decades now.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aWHbmXZFhiEs

They will have a larger stake in Asia than North America soon, as they see that as THE growth market.

[Major Hogwash]

24. Not the trucks they make in America!! They're from Michigan, I've seen the sales stickers!!!

Seriously misguided peeps here at the DU

[Romulox]

43. Ford makes its trucks in Michigan, too.

:eyes:

[Critters2]

46. You and your interminable facts!

:grr:

[Romulox]

47. I have some *minor* personal insight into the DEARBORN TRUCK PLANT

http://corporate.ford.com/about-ford/heritage/places/dearborntruck/661-dearborn-truck

:)

[Major Hogwash]

61. Trucks made by Ford suck.

That's all there is to it.

[SemperEadem]

11. they can pay a poor Indian $1.50/hr

and then turn around and sell the vehicle for a +1,000,000,000,000,000 mark up and then use the profits to buy off even more politicians in the US. And they won't have to adhere to safety standards--they'll throw an injured worker out on the street and get another cog for their wheel.

And that's why I don't buy Ford, never have and clearly, never will.

[and-justice-for-all]

34. Its disgusting...

someone should tell India about that shit. I can not stand ford either, their autos are over rated.

[Critters2]

48. I had an Escort that drove to 304,000 miles. I had a Chevette that barely made it to 50,000.

Hard to overrate such facts.

[dflprincess]

65. My Chevette made it to 95,000

but the rust on it was awful. I decided it was time to dump it when I saw a bird hop out of the rust hole on the rider's door. (I had an image of myself telling the mechanic "It keeps making this tweety kind of sound.")

[JCMach1]

69. $1.50 an hour is damn good if you are trying to survive on $1 a day

which is what 1/2 of the country of India still does...

[La Lioness Priyanka]

12. if the cars are being sold in india, i dont see the problem

dont we have foreign car companies produce in the US?

[harmonicon]

20. shhhh - you're not supposed to point out the obvious.

It will anger/confuse the rampant India-haters on DU.

Of course the toyotas, BMWs, VWs, etc. made in the US are totally different because.... umm... something about "they took er jerbs!"

[BOG PERSON]

40. yeah

car companies build factories in the countries they're selling to, in order to save money on shipping. no Hard-Working Americans were harmed in the making of this factory.

[Hubert Flottz]

13. "I'd sooner have a dose of the clapp than to own a Ford!"

"Because the clapp is easier to get rid of!"

Some Sage Advice, I was given as a Ute!

[lunatica]

14. And I bet they make cheap cleaner energy cars too

Because in India people can't afford big ass gas guzzlers.

I still see a fair amount of SUVs and larger than necessary trucks and I wonder how much their gas bills are. I know I can barely keep my Honda's tank even a quarter full. There are times when I've had to borrow money to buy gas for it at the end of the month. And I drive as little as I can, mostly to and from the BART train. Paying almost $4 dollars a gallon is prohibitive.

[grahamhgreen]

25. The Ford Ka gets over 50 miles to the gallon ( not available here)

[and-justice-for-all]

35. We made cars here in 80s that got 50mpg

and several other cars that had just as good mpg. Aries K, Omni, Miser and the 024

[Kolesar]

36. A nice Reliant automobile

Datsun made an "MPG" version of their model 210 that had a smaller 1200cc engine and reported highway fuel economy in the "high 30s" mpg.

[cstanleytech]

15. Some of you may want to stop being so asinine

and read the damn article first.
They are building this plant in India to make engines for cars that will be sold there in India.

[MineralMan]

23. Folks. Please read the actual post, even if you don't click through

to the link. This factory will be building stuff that will be for sale in INDIA! Just reading the title of the post isn't enough. You have to read the post itself.

I can't believe that so many people are posting nonsense about this costing US jobs.

Reading is FUNdamental...

[cyberpj]

26. I noticed they're going to expand to Africa as well -- How many Africans will be buying Fords? nt

[MineralMan]

29. More, I imagine, when Ford builds them there.

US-made autos are too expensive for people in other countries, when you consider the cost of shipping and duties charged for imported autos. Building cars in the market where you sell them is good business. The Japanese, for example, have been doing it here in the US for a long time. You may have noticed that...or not.

[cyberpj]

30. Oh please. They'll also be purchased by and sold to many a War Lord and used to perpetuate genocide

there. Because Ford is going to make it cheaper for them to buy because "building cars in the market where you sell them is good business". - And after all, that's what matters isn't it?

[harmonicon]

32. I don't know if I should laugh or cry after reading this post of yours.

"many a War Lord" - is that a joke? What do you think Africa is? Do you think it's just a mix of nature documentaries and wars fought - never by armies with generals - by War Lords?!

Crazy point #2: You don't want US companies being profitable overseas? You'd rather an Asian or European company got that money from those markets? I guess if they did, we wouldn't have to worry about that dirty African War Lord money coming back to the US and enriching our economy.

[cyberpj]

37. "The enduring presence of warlords in Africa, and the influence of their international supporters.."

Well, how about news from Africa itself:

Warlords threaten state-building in Africa
snip-
"The enduring presence of warlords in Africa, and the influence of their international supporters threaten the process of state-building in the region, according to research at the University of Birmingham.

Dr. Danielle Beswick, from the University's International Development Department analysed data relating to warlords in Congo, focusing in particular on the eastern Kivu provinces which borders Rwanda, Uganda and Burundi."

http://www.modernghana.com/news/229795/1/warlords-threaten-state-building-in-africa.html

or this one
snip-
"The findings of the research said development partners have not been able to develop strategies which can incorporate or effectively challenge warlords and their supporters but spend a lot on reconstruction especially in the Congolese State."

http://www.africanews.com/site/Warlords_threaten_statebuilding_in_Africa/list_messages/26178

or this old thing:

U.S. Secretly Backing Warlords in Somalia

snip-
More than a decade after U.S. troops withdrew from Somalia following a disastrous military intervention, officials of Somalia's interim government and some U.S. analysts of Africa policy say the United States has returned to the African country, secretly supporting secular warlords who have been waging fierce battles against Islamic groups for control of the capital, Mogadishu.

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/16/AR2006051601625.html


As for Crazy Point #2 - It's not as if that War Lord money would actually come back and enrich our economy -- it would simply enrich the already rich owners and operators of those automobile companies who would then continue to hold onto it or else continue to export US jobs so they could make even more off of poorer nations.

Sorry. I guess we'll have to agree to disagree.

[Critters2]

44. Have you been to Africa? I have, and I saw lots of people driving cars.

I don't think they were all war lords. I know for a fact that some of the people I visited were farmers, doctors, and pastors. A couple of teachers, too. And a guy who ran a gas station. And some conservation officers. And waiters. I don't recall meeting a single warlord. But how would I know? Do they wear uniforms, or have special titles?

[BOG PERSON]

41. what on earth are you talking about?

[Sen. Walter Sobchak]

38. Have you been to Africa?

They have cars, computers, airplanes, indoor plumbing, swimming pools, Blackberry's and Xbox.

[TK421]

68. and Toto!!

http://www.youtube.com/watch?v=azVqekQBK8g

[grahamhgreen]

27. Will we be shipping more or less cars to India after the plant is built?

[MineralMan]

28. Very doubtful. I doubt that we ship many cars there now.

US-made cars are not really that suitable for India's needs. A few, I suppose, are sold to very rich people there, but that's it. However, I imagine that some of Ford's European-made models go to India, but that's another issue.

Ford is a multinational car manufacturer, with divisions outside the US that make cars for local markets. India is another such market, It doesn't affect US jobs one whit.

[grahamhgreen]

31. They certainly ship a lot of cars here, that should be made here.

Top 20 Auto Export destinations in 2007-2008
2007-2008 (in USD Millions)

1 United States of America 593.64
2 Italy 332.35 359.68
3 Sri Lanka 249.14
4 South Africa 224.93
5 United Kingdom 165.57
6 United Arab Emirates 164.44
7 Algeria 147.34
8 Bangladesh 137.26
9 Egypt 134.43 143.54
10 Germany 133.52

http://en.wikipedia.org/wiki/Automotive_industry_in_India

[Starbucks Anarchist]

57. You expect DUers to read when knee-jerk xenophobia is much easier?

:rofl:

[Major Hogwash]

62. It's not xenophobic to want American companies to create jobs in America

Why is that such a hard concept to understand.

[Major Hogwash]

63. On top of that, why doesn't Ford invest in America? When was the last plant Ford built here?

They practically shut down the Twin Cities plant in Minneapolis a few years ago.

[Major Hogwash]

64. To add to that, Ford could build a plant in Texas and have a willing job force.

But, they won't build a new plant in Texas.

[Starbucks Anarchist]

67. They're making cars for the Indian market.

It's not like they're making the cars in India for American consumers.

Are you against the Hyundai plant in Alabama or the Toyota plant in Kentucky?

[and-justice-for-all]

33. The US better not give Ford any breaks at all for that shit..nt

[Auntie Bush]

39. That should count as 5,000 jobs lost here.

[Critters2]

45. Not if it's expansion. The plant will make products to be sold in Asia

so, not necessarily a loss of jobs here. A company can have factories in two places at the same time. Really.

[tammywammy]

49. Makes sense

Making cars in the market they're selling to. India is a huge market to tap into. Hope it goes well for Ford.

[Broderick]

52. Ford has done well

They didn't take a bailout and they didn't get rid of the unions.

[Spider Jerusalem]

51. Hmmm, so Ford is building a plant in a country of a billion people...

with a growing middle class to produce vehicles for that market? Response to this is "so what"? I don't see why some here have their knickers in a twist over this. GM and Ford etc already have local production facilities in different markets. GM for instance builds Vauxhalls here in the UK in their factories at Ellesmere Port and Luton, and Opels in Germany at Rüsselsheim, and Ford has factories building engines and components and doing final assembly in the UK, France, Germany, Spain, etc. I don't see why anyone here thinks it's an issue.

[harmonicon]

59. You've been a member of this board for 8 years and this surprises you?

The problem with US politics isn't the Republicans and the morons who vote for them. There's nothing we can do about that. The problem is that those who oppose them don't have any coherent plan. What was the famous quote? Something like, "I'm not a member of any organized party. i'm a Democrat." Something like 80 percent of the US population don't even have passports, including most people on DU. For them, it's the US or nothing. The rest of the world might as well be labeled either NAFTA or "there be dragons here."

[JCMach1]

70. You are correct...

[high density]

54. Corporations have got to follow the money

The money is not among the consumers in the USA anymore. The top 0.1% who do have the money will not each buy hundreds of thousands of cars from Ford.

[rbnyc]

56. + 1

That's the crux of the issue. If people have money to buy products, jobs are created here. Another nail in the coffin of supply-side economics, except that we are in the coffin and the Reagan's zombie is running rampant in Washington.

[trud]

60. If the cars are sold in India

I have no problem with them being built in India.