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	<title>Ford Deals</title>
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	<link>http://getforddeals.com</link>
	<description>Ford Cars &#38; Autos</description>
	<lastBuildDate>Thu, 26 Apr 2012 23:37:57 +0000</lastBuildDate>
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		<title>Ford plants in Victoria remain closed</title>
		<link>http://getforddeals.com/2012/04/26/ford-plants-in-victoria-remain-closed/</link>
		<comments>http://getforddeals.com/2012/04/26/ford-plants-in-victoria-remain-closed/#comments</comments>
		<pubDate>Thu, 26 Apr 2012 23:37:57 +0000</pubDate>
		<dc:creator>musiclover</dc:creator>
				<category><![CDATA[Ford News]]></category>

		<guid isPermaLink="false">http://getforddeals.com/?p=490</guid>
		<description><![CDATA[Employees at two Victorian Ford plants remain off work on Friday while administrators struggle to revive a key parts maker that abruptly stopped production. About 1800 workers at the car company&#8217;s Broadmeadows and Geelong plants are facing a down day, which will result in Ford paying them 50 per cent of their wages that can]]></description>
			<content:encoded><![CDATA[<p>Employees at two Victorian Ford plants remain off work on Friday while administrators struggle to revive a key parts maker that abruptly stopped production.<span id="more-490"></span></p>
<p>About 1800 workers at the car company&#8217;s Broadmeadows and Geelong plants are facing a down day, which will result in Ford paying them 50 per cent of their wages that can then be topped up with annual leave.</p>
<p>It could take until Wednesday before Ford&#8217;s Australian car-making operations are up and running as parts maker CMI Industrial&#8217;s Melbourne factory remains shut over debt problems.</p>
<p>A Ford spokeswoman says workers face another down day on Tuesday and CMI may not be ready to start supplying parts for Ford until Wednesday.</p>
<p>&#8216;Obviously the whole process needs a bit of time to happen before we can start our production line again,&#8217; spokeswoman Sinead Phipps said.</p>
<p>CMI workers have been locked out of its Campbellfield factory while receivers, who took control of the company on Thursday, continue working through its books.</p>
<p>Workplace Relations Minister Bill Shorten says CMI could remain a viable business if it was restructured.</p>
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		<title>GM, Ford Net to Feel Pinch From Overseas Operations</title>
		<link>http://getforddeals.com/2012/04/25/gm-ford-net-to-feel-pinch-from-overseas-operations/</link>
		<comments>http://getforddeals.com/2012/04/25/gm-ford-net-to-feel-pinch-from-overseas-operations/#comments</comments>
		<pubDate>Wed, 25 Apr 2012 23:09:51 +0000</pubDate>
		<dc:creator>musiclover</dc:creator>
				<category><![CDATA[Ford News]]></category>

		<guid isPermaLink="false">http://getforddeals.com/?p=487</guid>
		<description><![CDATA[Facing increasing challenges overseas, Ford Motor Co. F +2.99% and General Motors Co. GM +1.83% appear headed for slimmer profits this year compared with 2011 although their bottom lines should remain very strong by historical standards. Ford will give investors a glimpse of what&#8217;s ahead when it reports its first quarter earnings on Friday. Analysts expect the]]></description>
			<content:encoded><![CDATA[<p>Facing increasing challenges overseas, Ford Motor Co. F +2.99% and General Motors Co. GM +1.83% appear headed for slimmer profits this year compared with 2011 although their bottom lines should remain very strong by historical standards.<span id="more-487"></span></p>
<p>Ford will give investors a glimpse of what&#8217;s ahead when it reports its first quarter earnings on Friday. Analysts expect the auto maker to report strong income from its North America automotive business, which is getting a lift from a robust rise in U.S. auto sales.</p>
<p>At the same time, however, Ford is expected to report lower profit from its financing arm, a higher tax rate in the U.S., and losses in Europe and Asia.</p>
<p>For GM, which reports its earnings on May 3, it is a similar picture—increasing demand and higher prices in the U.S., despite high gasoline prices, but trouble in Europe, with increasing competition pressuring profits in South America and China.</p>
<p>Not all parts of the two big Detroit auto makers are pulling in the same direction, said Peter Nesvold, a transportation analyst with Jefferies &amp; Co. in New York. &#8220;This is going to be an exceptionally strong year in North America. But international is not going to be contributing much to earnings this year.&#8221;</p>
<p>Analysts estimate Ford will report first-quarter earnings of 35 cents a share, according to a consensus compiled by Thomson Financial. That&#8217;s down from 61 cents a year ago. GM is expected to report a first-quarter operating profit of $1.38 billion on revenue of $37.54 billion, according to Thomson Reuters. In the year ago quarter, GM reported an adjusted operating profit of $2 billion and revenue of $36.2 billion. The consensus estimate for GM is 85 cents a share, Thomson Financial said. In the first quarter of 2011, GM reported earnings per share of 95 cents.</p>
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		<title>Ford to invest $760m in China factory</title>
		<link>http://getforddeals.com/2012/04/19/ford-to-invest-760m-in-china-factory/</link>
		<comments>http://getforddeals.com/2012/04/19/ford-to-invest-760m-in-china-factory/#comments</comments>
		<pubDate>Thu, 19 Apr 2012 21:16:03 +0000</pubDate>
		<dc:creator>musiclover</dc:creator>
				<category><![CDATA[Ford News]]></category>

		<guid isPermaLink="false">http://getforddeals.com/?p=481</guid>
		<description><![CDATA[Ford will invest $760m to build a new plant in eastern China as part of a drive to catch up with global rivals General Motors and Volkswagen in the world’s largest car market. Ford’s new plant in Hangzhou, in the rich entrepreneurial belt of China’s Zhejiang province, will help the company double capacity to reach]]></description>
			<content:encoded><![CDATA[<p>Ford will invest $760m to build a new plant in eastern China as part of a drive to catch up with global rivals General Motors and Volkswagen in the world’s largest car market.<span id="more-481"></span></p>
<p>Ford’s new plant in Hangzhou, in the rich entrepreneurial belt of China’s Zhejiang province, will help the company double capacity to reach 1.2m vehicles by 2015, the company said. Ford said the move is part of the company’s “largest expansion in 50 years”, aimed at boosting global sales by 50 per cent from 2010 to about 8m vehicles a year by mid-decade.</p>
<p>VW and GM were early entrants in China and remain far more powerful there. Ford formed its first joint venture in China only just over a decade ago, while VW has been producing cars in China since the 1980s. GM and VW each produced more than 2m vehicles in China last year.</p>
<p>Ford, which produces cars jointly with Chongqing Changan Automobile Co and Mazda, has recently stepped up dramatically the pace of its expansion in China: two weeks ago it said it would invest $600m to expand capacity at its facility in Chongqing, central China, the largest manufacturing base for the company outside its home in southeastern Michigan.</p>
<p>The company said it would bring 15 new vehicles and 20 new powertrains to China by 2015, increasing the company’s relatively limited product range available on the mainland. Ford is expected to unveil a sport utility vehicle at the Beijing car show, which opens on Monday, hoping to tap rising mainland demand for more fun, individualistic kinds of vehicles among younger buyers.</p>
<p>Meanwhile Ford’s US rival in China, GM, played down speculation that it had reached a deal with its Chinese joint venture partner, SAIC, to regain equal equity control of their joint venture by buying back 1 per cent of the equity sold to SAIC when GM was in financial straits in 2009. That deal had a proviso to allow GM to buy back the stake, so long as SAIC continued to be able to claim the joint venture’s revenues under new Chinese accounting rules.</p>
<p>The Wall Street Journal said on Thursday that agreement had been reached to split the venture into a sales arm and an operational arm, with GM and SAIC sharing control of the operational side equally. But GM said that negotiations on the matter are “ongoing” and that there was “no specific date set” for the repurchase. Any such deal would require government approval.</p>
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		<title>Ford to take slow road on electric trucks: CEO</title>
		<link>http://getforddeals.com/2012/04/18/ford-to-take-slow-road-on-electric-trucks-ceo/</link>
		<comments>http://getforddeals.com/2012/04/18/ford-to-take-slow-road-on-electric-trucks-ceo/#comments</comments>
		<pubDate>Wed, 18 Apr 2012 22:11:17 +0000</pubDate>
		<dc:creator>musiclover</dc:creator>
				<category><![CDATA[Ford News]]></category>

		<guid isPermaLink="false">http://getforddeals.com/?p=478</guid>
		<description><![CDATA[Ford Motor Co will be slower to build electric-powered pickups and other larger vehicles because the batteries to power them are still extremely costly, Ford CEO Alan Mulally said on Tuesday. The second-largest U.S. automaker is now electrifying the platforms used to build compact cars and mid-size sedans, a move that allows Ford to curb]]></description>
			<content:encoded><![CDATA[<p>Ford Motor Co will be slower to build electric-powered pickups and other larger vehicles because the batteries to power them are still extremely costly, Ford CEO Alan Mulally said on Tuesday.<span id="more-478"></span></p>
<p>The second-largest U.S. automaker is now electrifying the platforms used to build compact cars and mid-size sedans, a move that allows Ford to curb costs by building electric, hybrid and gas-powered versions of the same car on a single assembly line.</p>
<p>But for larger vehicles, &#8220;the electrical components are so much bigger and costlier,&#8221; Mulally said at a meeting with reporters in downtown Los Angeles. &#8220;So I think the migration to the bigger vehicles will be slower.&#8221;</p>
<p>Ford says American car buyers have increasingly focused on fuel economy since 2008 when gasoline prices shot past $4 a gallon. As a result, Ford has made improving fuel economy the centerpiece of its design strategy.</p>
<p>For now, Ford can better boost the fuel economy of its larger vehicles, which include the top-selling F-150 pickup truck, by lowering the vehicles&#8217; weight by using lighter materials.</p>
<p>&#8220;The value of light-weighting in the bigger vehicles is so much bigger than on the smaller vehicles,&#8221; Mulally said.</p>
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		<title>Chevrolet, GMC Announce Bi-Fuel Pickup Pricing</title>
		<link>http://getforddeals.com/2012/04/18/chevrolet-gmc-announce-bi-fuel-pickup-pricing/</link>
		<comments>http://getforddeals.com/2012/04/18/chevrolet-gmc-announce-bi-fuel-pickup-pricing/#comments</comments>
		<pubDate>Wed, 18 Apr 2012 22:07:12 +0000</pubDate>
		<dc:creator>musiclover</dc:creator>
				<category><![CDATA[Ford News]]></category>

		<guid isPermaLink="false">http://getforddeals.com/?p=476</guid>
		<description><![CDATA[Chevrolet and GMC extended cab heavy-duty pickup trucks with a bi-fuel option will sell for $11,000 above the suggested base-vehicle price. Fleet and retail customers can place orders for the 2013 Chevrolet Silverado HD and GMC Sierra 2500 HD beginning Thursday (April 19). The pickups, which run on compressed natural gas (CNG) and gasoline, have]]></description>
			<content:encoded><![CDATA[<p>Chevrolet and GMC extended cab heavy-duty pickup trucks with a bi-fuel option will sell for $11,000 above the suggested base-vehicle price. Fleet and retail customers can place orders for the 2013 Chevrolet Silverado HD and GMC Sierra 2500 HD beginning Thursday (April 19). <span id="more-476"></span></p>
<p>The pickups, which run on compressed natural gas (CNG) and gasoline, have a Vortec 6.0L V8 engine that seamlessly transitions between the two fuel systems. A single light-weight Type 3 tank in the bed maximizes available payload and bed space, offering more usable space than competitors.</p>
<p>The Silverado HD and Sierra 2500 HD offer customers fueling flexibility with a combined CNG and gasoline range of more than 650 miles &#8211; the longest range available in the bi-fuel truck market.</p>
<p>“The announcement of the bi-fuel Silverado and Sierra has been well-received among customers, which sends a clear message that businesses are looking for alternative fuel options to meet their needs,” said Ed Peper, general manager, GM Fleet and Commercial Operations. “The addition of the full-size bi-fuel pickups to our product portfolio is part of our commitment to offer great products, innovative business solutions and an exceptional customer experience.”</p>
<p>The pickups, which provide more options than any on the market, will be available in standard and long-box, two-or-four-wheel drive in the extended cab models, offering customization for specific needs.</p>
<p>“Businesses are looking for ways to control their costs while reducing vehicle emissions and becoming less dependent on fluctuating gas prices. The low cost of ownership makes these vehicles a realistic solution,” said Joyce Mattman, director, GM Commercial Product and Specialty Vehicles. “CNG has maintained a significantly lower retail price than either gasoline or diesel. The current average price of CNG is equivalent to $1.89 per gallon of gasoline. Customers could save $5,000 to $10,000 over a three-year period, depending on their driving habits.”</p>
<p>The bi-fuel trucks will be covered by GM’s three-year, 36,000-mile new vehicle limited warranty and five-year, 100,000-mile limited powertrain warranty and vehicle emissions warranty, meeting all Environmental Protection Agency (EPA) and California Air Resources Board (CARB) emission certification requirements.</p>
<p>The entire manufacturer-backed gaseous fuel system in the vehicles meets GM’s strict quality, durability, safety testing and is covered under the extensive warranty. The trucks are built in Fort Wayne, Ind., and then sent to the Tier One supplier for installation of the CNG bi-fuel delivery and storage system.</p>
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		<title>Ford China to Invest $600 Million to Raise Capacity 60</title>
		<link>http://getforddeals.com/2012/04/05/ford-china-to-invest-600-million-to-raise-capacity-60/</link>
		<comments>http://getforddeals.com/2012/04/05/ford-china-to-invest-600-million-to-raise-capacity-60/#comments</comments>
		<pubDate>Thu, 05 Apr 2012 22:31:47 +0000</pubDate>
		<dc:creator>musiclover</dc:creator>
				<category><![CDATA[Ford News]]></category>

		<guid isPermaLink="false">http://getforddeals.com/?p=472</guid>
		<description><![CDATA[Ford Motor Co.’s China unit will invest about $600 million to increase the capacity of one of its passenger-car factories by almost 60 percent as it looks to expand its operations in the world’s largest auto market. The automaker, along with joint venture partner Changan Automobile Group Co. (CFORDZ), will raise capacity at its factory]]></description>
			<content:encoded><![CDATA[<p>Ford Motor Co.’s China unit will invest about $600 million to increase the capacity of one of its passenger-car factories by almost 60 percent as it looks to expand its operations in the world’s largest auto market.<span id="more-472"></span></p>
<p>The automaker, along with joint venture partner Changan Automobile Group Co. (CFORDZ), will raise capacity at its factory in the southwestern Chinese city of Chongqing by 350,000 units to 950,000 vehicles annually by 2014, Ford said in an e-mailed statement yesterday. Construction is expected to begin immediately, it said.</p>
<p>Expansion in the world’s largest vehicle market is part of Chief Executive Officer Alan Mulally’s push to increase annual global sales by 50 percent to 8 million vehicles by 2015 and have one third of its deliveries in Asia by 2020.</p>
<p>“The Chinese auto industry remains the biggest growth market in the world,” David Schoch, chairman of Ford China, said in the statement. “Expanding our production capacity in Chongqing is a key part of our aggressive growth plans in China and Asia.” Ford will introduce 15 new vehicles and 20 new engines and transmissions in China by 2015, the automaker said.</p>
<p>China’s vehicle sales this year will probably miss their 8 percent growth forecast as the slowing economy and rising fuel costs curb buying, Gu Xianghua, deputy secretary general of the China Association of Automobile Manufacturers, said last month, citing his personal opinion.</p>
<p>Vehicle sales growth in China slowed last year from 32 percent in 2010 after the government withdrew a two-year package of tax breaks and rebates that helped the country overtake the U.S. Total auto sales, including those of commercial vehicles, grew 2.5 percent in 2011, according to the industry group.</p>
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		<title>Ford Says Market Share May Slip</title>
		<link>http://getforddeals.com/2012/04/04/ford-says-market-share-may-slip/</link>
		<comments>http://getforddeals.com/2012/04/04/ford-says-market-share-may-slip/#comments</comments>
		<pubDate>Wed, 04 Apr 2012 21:47:12 +0000</pubDate>
		<dc:creator>musiclover</dc:creator>
				<category><![CDATA[Ford News]]></category>

		<guid isPermaLink="false">http://getforddeals.com/?p=469</guid>
		<description><![CDATA[Ford Motor Co. is likely to lose market share this year in the U.S., the first decline since 2008, the company&#8217;s head of North and South America said Wednesday. Despite a market-share loss, Ford should generate higher than previously thought margins and profit in North America, Americas chief Mark Fields said at an investor&#8217;s presentation]]></description>
			<content:encoded><![CDATA[<p>Ford Motor Co. is likely to lose market share this year in the U.S., the first decline since 2008, the company&#8217;s head of North and South America said Wednesday.<span id="more-469"></span></p>
<p>Despite a market-share loss, Ford should generate higher than previously thought margins and profit in North America, Americas chief Mark Fields said at an investor&#8217;s presentation hosted by Bank of America.</p>
<p>Ford raised its forecast for U.S. industry sales to between 14.5 million and 15 million vehicles, including sales of medium- and heavy-duty vehicles, up from its previous target range of 13.5 million to 14.5 million.</p>
<p>Mr. Fields said capacity constraints because of the faster-than-expected growth may lead to the lower market share for Ford, but could also mean higher pricing and margins for its vehicles.</p>
<p>Ford gained market share in the U.S. for three straight years, touching 16.8% in 2011, after hitting a low of 14.4% in 2008. But in the first quarter of 2012, its share is off 0.8 percentage point compared with a year earlier. The company changed its forecast of a stable share to a declining share.</p>
<p>Ford this week reported that its U.S. sales rose 5% in March and that it had record deliveries of its compact Focus compact as well as strong sales of its full-sized F-series pickups.</p>
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		<title>Ford Unveils High-Performance Explorer</title>
		<link>http://getforddeals.com/2012/03/29/ford-unveils-high-performance-explorer/</link>
		<comments>http://getforddeals.com/2012/03/29/ford-unveils-high-performance-explorer/#comments</comments>
		<pubDate>Thu, 29 Mar 2012 23:11:31 +0000</pubDate>
		<dc:creator>musiclover</dc:creator>
				<category><![CDATA[Ford News]]></category>

		<guid isPermaLink="false">http://getforddeals.com/?p=464</guid>
		<description><![CDATA[Ford Motor Co. revealed the first high performance version of the automaker’s Explorer SUV on the brand’s Facebook page Wednesday. The new SUV will be officially unveiled at the New York Auto Show next week. Ford calls the new all-wheel-drive Explorer Sport the most fuel efficient high performance SUV available. It will be powered by]]></description>
			<content:encoded><![CDATA[<p>Ford Motor Co. revealed the first high performance version of the automaker’s Explorer SUV on the brand’s Facebook page Wednesday. The new SUV will be officially unveiled at the New York Auto Show next week.<span id="more-464"></span></p>
<div>
<p>Ford calls the new all-wheel-drive Explorer Sport the most fuel efficient high performance SUV available. It will be powered by a turbocharged V6 engine producing at least 350 horsepower. It is expected to get 16 miles per gallon in city driving and 22 on the highway or one mile per gallon less than a standard all-wheel-drive V6 Ford Explorer.</p>
<p>The most powerful Explorer now on the market has a 290-horsepower non-turbocharged V6.</p>
<p>The Explorer Sport is not the first high-performance SUV nor is it the most powerful. Chrysler Group offers the Jeep Grand Cherokee SRT8 powered by a 465-horsepower 6.4-liter V8 engine which gets 14 mpg in the city and 18 on the highway.</p>
<p>A number of luxury automakers, including Porsche, Mercedes-Benz, BMW and Land Rover, also offer high-output versions of their SUVs.</p>
<p>The Explorer Sport will have a six-speed automatic transmission with steering wheel-mounted paddles so drivers can shift gears themselves.</p>
<p>The Explorer Sport’s chassis has been bolstered to improve handling, Ford said. It also has larger brakes for quicker stopping and the steering has been tuned for added responsiveness.</p>
<p>Despite being set up for driving performance, the Explorer Sport will still have the same computer controlled “Terrain Management System” found in other Explorers with its settings for sand, snow, mud and rough surfaces.</p>
<p>While high-performance SUVs may appeal to a narrow market, they don’t cost much for automakers to create, pointed out Motor Trend magazine editor Todd Lassa. The engines used in these SUVS are also used in cars and, in the case of the Explorer, the vehicle’s basic engineering is shared with many other Ford vehicles including the Taurus sedan.</p>
</div>
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		<title>Ford Explorer Gets EcoBoost V-6 and a Touch of Swagger</title>
		<link>http://getforddeals.com/2012/03/28/ford-explorer-gets-ecoboost-v-6-and-a-touch-of-swagger/</link>
		<comments>http://getforddeals.com/2012/03/28/ford-explorer-gets-ecoboost-v-6-and-a-touch-of-swagger/#comments</comments>
		<pubDate>Wed, 28 Mar 2012 22:52:09 +0000</pubDate>
		<dc:creator>musiclover</dc:creator>
				<category><![CDATA[Ford News]]></category>

		<guid isPermaLink="false">http://getforddeals.com/?p=462</guid>
		<description><![CDATA[On Wednesday, Ford introduced the 2013 Ford Explorer Sport, a performance version of its bread-and-butter S.U.V.In a media release, the automaker said the vehicle, which would represent the top of the Explorer model line, was the first-ever high-performance model for its venerable Explorer nameplate. That may be true, though some Wheels readers may remember the]]></description>
			<content:encoded><![CDATA[<p>On Wednesday, Ford introduced the 2013 Ford Explorer Sport, a performance version of its bread-and-butter S.U.V.<span id="more-462"></span>In a media release, the automaker said the vehicle, which would represent the top of the Explorer model line, was the first-ever high-performance model for its venerable Explorer nameplate. That may be true, though some Wheels readers may remember the Sport designation on a two-door version of the S.U.V. offered in the 1990s and 2000s.</p>
<p>The Explorer Sport shares the carlike body-chassis unit found on the 2012 Explorer, but instead of that model’s 290-horsepower V-6 and EcoBoost 4-cylinder engines, the Sport gets a twin-turbocharged EcoBoost V-6 that, according to Ford, generates at least 350 horsepower. The engine is backed by a paddle-shifted 6-speed automatic. A somewhat stout 3.16:1 final drive ratio is said to provide a balance of responsive acceleration and economical low-r.p.m. cruising.</p>
<p>A reinforced chassis, electric power steering with a quicker ratio and stouter suspension calibration are intended to improve the vehicle’s handling. Brakes have grown, too, though the disc and caliper sizes were not disclosed.</p>
<p>&nbsp;</p>
<p>If Ford’s projected fuel-economy figures of 16 miles per gallon in city and 22 m.p.g. in highway driving are verified by the E.P.A., the vehicle would better the fuel economy of the 2012 Jeep Cherokee and Dodge Durango, which share a 360-horsepower 5.7-liter Hemi V-8 engine, by 3 m.p.g. and 2 m.p.g. in their respective categories.</p>
<p>In a reminder of shifting corporate allegiances, Ford compared the Explorer’s fuel economy with that of the Land Rover’s Range Rover Sport. The model was developed under Ford’s stewardship of the British S.U.V. builder, before the marque was sold along with Jaguar to Tata Motors in 2008. The Explorer Sport would have the edge by 3 m.p.g. in city and 4 m.p.g. in highway driving.</p>
<p>Subtle exterior cues give the Explorer Sport a somewhat more aggressive appearance than currently available trim packages. These include painted 20-inch wheels, various black trim pieces and a low-gloss gray-mesh grille with glossy black bars spanning its width.</p>
<p>Standard and optional features do not differ from those available at other trim levels and include 4-wheel drive, dual-zone temperature control, first-row heated power seats, rear-view camera, the MyFord Touch infotainment system and a premium sound system with 12 speakers.</p>
<p>Pricing for the Explorer Sport will be announced closer to its sale date this year, but as the new range-topper, it would be expected to exceed the price of an Explorer Limited with 4-wheel drive, which begins at $40,680.</p>
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		<title>Ford lays foundation for $1B India factory</title>
		<link>http://getforddeals.com/2012/03/22/ford-lays-foundation-for-1b-india-factory/</link>
		<comments>http://getforddeals.com/2012/03/22/ford-lays-foundation-for-1b-india-factory/#comments</comments>
		<pubDate>Thu, 22 Mar 2012 21:40:27 +0000</pubDate>
		<dc:creator>musiclover</dc:creator>
				<category><![CDATA[Ford News]]></category>

		<guid isPermaLink="false">http://getforddeals.com/?p=460</guid>
		<description><![CDATA[Ford Motor Co. laid the cornerstone for a new $1 billion dollar factory in India on Thursday, pressing ahead with expansion plans despite an uncertain outlook for Asia&#8217;s No. 3 economy where growth in car sales has recently waned. Ford&#8217;s plant will have the capacity to manufacture 240,000 cars and 270,000 engines a year when]]></description>
			<content:encoded><![CDATA[<p>Ford Motor Co. laid the cornerstone for a new $1 billion dollar factory in India on Thursday, pressing ahead with expansion plans despite an uncertain outlook for Asia&#8217;s No. 3 economy where growth in car sales has recently waned.<span id="more-460"></span></p>
<p>Ford&#8217;s plant will have the capacity to manufacture 240,000 cars and 270,000 engines a year when it&#8217;s complete in 2014. The factory will produce cars for domestic consumers and for export.</p>
<p>&#8220;We are committed to significantly increasing our manufacturing output and aggressively expanding our business in India,&#8221; Michael Boneham, Ford India&#8217;s managing director, said in a statement.</p>
<p>Ford&#8217;s expansion of its India business comes amid slowing car sales in India. So far during the fiscal year ending in March, car sales have crept up 0.3 percent, against the previous year&#8217;s 29.5 percent surge.</p>
<p>Car sales in India have suffered as the economy has slowed. High interest rates, driven by the central bank&#8217;s aggressive attempts to control inflation, have also hurt demand.</p>
<p>The government expects India&#8217;s economy to grow 6.9 percent this fiscal year, against 8.4 percent last year. The ruling Congress Party has been unable to corral restive coalition partners and state leaders to push through changes in foreign investment, tax, labor and land laws that could unlock growth and reassure investors.</p>
<p>Recent tax hikes and persistent inflation have diminished hopes that the central bank will quickly lower interest rates to kickstart the economy.</p>
<p>Ford&#8217;s passenger vehicle sales for the April to February period fell 5 percent from a year earlier to 83,639 vehicles, according to the latest data from the Society of Indian Automobile Manufacturers, an industry group.</p>
<p>The slowdown comes after a period of strong growth, driven by the popularity of Ford&#8217;s affordable compact Figo car. Ford, which says it has invested $2 billion in India, still lags General Motors in India sales.</p>
<p>Ford plans to launch eight new vehicles in India by the middle of the decade.</p>
<p>Analysts predict India&#8217;s growth will bounce back as the economy grows and interest rates fall. IHS expects sales of passenger cars and light trucks in India to more than double in the next eight years, reaching 6.2 million vehicles by 2019.</p>
<p>Ford&#8217;s 460-acre site is in Sanand, in the Indian state of Gujarat, which has a reputation for being business friendly.</p>
<p>Tata Motors moved its Tata Nano factory to Sanand, after local protests forced it to shutter its factory in the state of West Bengal.</p>
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