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Ford looks to India for parts value

Ford Motor Company has announced that it is to source $120- $160m worth of car components from Indian manufacturers over the next two years.

And this comes on top of around $40m orders placed with four Indian component manufacturers for its US and European operations – a move which has already rung alarm bells among European OEM parts suppliers.

Arvind Mathew, Ford India vice-president and executive director says: "Indian manufacturers have a definite cost advantage in components that involve castings and forgings. We intend to source such components."

Ford also plans to hold talks with potential Indian suppliers for sourcing components like interior trim and chassis components.

“Under the India Sourcing Programm, exports will be mainly to Ford's operations in North America, Europe and China," says Mr Mathew.

The move comes amid warnings – voiced yesterday by an AlixPartners report presented to global car industry chiefs in the US – that tier 1 and tier 2 suppliers were approaching the abyss.

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