Ford eyes contract manufacturing for Citroen in India

It seems Ford may have an unutilized production capacity at its manufacturing plants in India.

Ford and Mahindra had plans to share platforms and technologies as part of their joint venture. Unfortunately, the plan was called off earlier this year. Now, according to a recent report, Ford is hunting for a new partner.

The report suggests that Ford is looking at partnerships for contract manufacturing at one of its factories and is said to be in talks with Citroen India. Ford has also had discussions with MG Motor in the past, which supposedly fell through.

The fact that Ford is exploring contract manufacturing opportunities suggests that the company may have an unutilized production capacity at its manufacturing plants. Ford's Chennai factory can produce 2 lakh vehicles and 3.40 lakh engines annually, while the installed production capacity at its Sanand plant in Gujarat is 2.40 lakh vehicles and 2.70 lakh engines.

The carmaker builds the EcoSport and Endeavour at its Chennai plant, while the Aspire and Figo are produced in Sanand. The factories also manufacture vehicles for export markets.

Source: Hindu Businessline