Date:02/05/2008 URL: http://www.thehindu.com/2008/05/02/stories/2008050254011800.htm

Business

Michael Boneham to head Ford India

Special Correspondent

Arvind Mathew moves to U.S. headquarters

The Chennai plant will turn out 2 lakh vehicles by 2010
Financial commitment goes up to $875 m

— Photo : Bijoy Ghosh

CHANGE OF GUARD: Michael Boneham (left), who will take over as President and Managing Director, Ford India from Arvind Mathew, from June 1 at a press conference in Chennai on Thursday.

CHENNAI: Come June, Ford India will have a new man at the helm. Michael Boneham, currently Executive Director (Operations), will take over as the new Managing Director of Ford India.

He will succeed Arvind Mathew, who has been appointed to a leadership role within the global product development team. After serving in India for about five years, Mr. Mathew will re-locate to Ford Motor Company’s world headquarters in Dearborn, Michigan.

The process of transition had been on since October last, Mr. Mathew told a news conference here on Thursday. Hence, he said, the change of guard would happen smoothly.

Mr. Boneham’s elevation to the top slot comes at a time when Ford India is in the midst of expansion.

In January this year, Ford Motor Company had committed an additional $500 million (around Rs.2,000 crore) investment into the Maraimalai Nagar facility near here.

Engine plant

The fresh investment, it was stated, would primarily go to set up a small car facility, expand the existing production base and establish a fully integrated and flexible engine making plant.

With this announcement of fresh fund infusion, Ford’s total financial commitment in India has gone to over $ 875 million. The investment plan, the company said, would be implemented over the next three years.

First phase

The first phase of the plan has already commenced and includes the addition of a diesel engine plant at Maraimalai Nagar with an initial annual capacity of 50,000 units.

These engines go into the local production of Fiesta and Fusion vehicles.

The move for expansion of the facility should be read in the context of Ford India’s desire to expand the product portfolio (including small car) by putting up an additional line.

By 2010, the Maraimalai Nagar plant would be in a position to churn out two lakh vehicles annually. The proposed state-of-the-art engine facility would have an annual capacity of 2.50 lakh units.

Tasks for new chief

The engine unit would go on stream in two years. The diesel engine plant would eventually be seamlessly integrated into the proposed state-of-the-art facility.

The biggest challenge for Mr. Boneham will be to drive Ford India to success through the expansion and pitchfork the company into a position of considerable strength at a time when cost and competitive pressures are mounting, putting extra load on the shoulders of top management.

Mr. Boneham has over two decades of experience in the automotive industry and served at several destinations across the globe.

Prior to coming to India, Mr. Boneham served as Manufacturing Director (Asia Pacific and Africa) in Ford Motor Company’s regional headquarters in Bangkok.

Answering a question if Ford India required any correction in its product portfolio, Mr. Boneham said, “we are comfortable with where we sit at the moment.”

Asked to elaborate on his agenda for the company, Mr. Boneham said, “ We are preparing for a significant growth to become a major player in India.”