Ford Motor expects to firm up capital allocation plans for India in the second half of this year, a senior executive said in an email to staff, as the automaker reviews its strategy in the country.
The automaker has tasked senior executive Steven Armstrong with reviewing investment plans for India in his new role as transformation officer.
“We have a lot of work to do as we continue to assess our capital allocations in the market,” Dianne Craig, president of Ford’s International Markets Group (IMG), said in an email to staff on Wednesday, referring to India.
“While we expect to have an answer in the second half of this year, the appointment of Steven…will help focus our efforts and speed up the process,” Craig added.
IMG includes India, where the company hires over 16,000, and 100 other markets.
Ford India head Anurag Mehrotra will report to Armstrong, who earlier headed the Changan Ford joint venture in China and will take on his new role from May 1, the company said.
Confirming that the automaker expects to reach a capital allocation decision in the second half of 2021, a Ford India spokesman said that the country is an important market and a source of worldwide powertrains for its Ranger SUV.
Ford has said earlier that it will allocate capital consistent with its plan to generate consistently strong cash flows and gain an 8% company adjusted EBIT (earnings before interest and tax) margin.
CEO Jim Farley, who is overseeing an $11 billion global restructuring of the automaker, wants to increase profits in India but the country is the main focus of the automaker compared to some other markets.
