Ford's project B562 to make India a compact car global production base.

MUMBAI: US carmaker Ford Motor Company is making India as a compact car global production base once its Sanand plant in Gujarat comes on stream in 2014, under a project codenamed B562 that may spawn three different compact cars from the same platform.

ET learns the move is part of Ford's larger global production restructuring plan which places greater responsibility on India versus its other base in Europe and across the world. Four people close to the development told ET, a project codenamed B562 is currently under development.

A small hatchback, a sub-4 metre sedan and a midsize compact sedan are being considered to be rolled out over the next two three years.

The development work of hatchback and mid-size compact sedan is gathering speed, however sub-4 metre sedan is still at a consideration stage, said people in the know of the development.

Underlining the growing significance of India as a base Alan Mulally, Global CEO of Ford Motor Company in a recent media interaction in India said, "The demand is dramatically down for cars in Europe, like it was in United States. So we are moving production, consolidating our facilities, but at the same time, we are accelerating the new vehicles. Customers want value, so it is going to take us a couple of years to finish that restructuring, we are doing the right thing for the customers and right thing for Ford,"

The hatchback may be placed alongside the existing Figo, the sub-4 metre sedan if given a go ahead will take on Maruti Suzuki Dzire and Honda Amaze and the mid-size compact sedan will replace Fiesta classic. Globally the hatchback is expected to replace the Ka small car, people close to the company told ET.

Source : economictimes.indiatimes.com