Ford to invest $500m in Chennai plant

Ford India said it will pump in $500 million for setting up a small car production facility and an engine manufacturing unit in Chennai. The company reiterated its plan to enter the Indian small car market by 2010. The car plant capacity would be doubled to 2,00,000 annually, while the initial annual production capacity of the engine manufacturing unit is planned for 250,000 units, with the first engines coming off assembly by 2010. The new engine manufacturing facility would be constructed adjacent to the existing plant near Chennai.