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Why did Ford Motors want to develop Ford India as a component supplying base for its other plants across the globe? Explain.

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Ford Motors wanted to develop Ford India as a component supplying base for its other plants across the globe because: 

  • Ford Motors was selling 27,000 cars in the Indian market and 24,000 cars were exported from India to South Africa, Mexico and Brazil. India was making components and know how to produce them, so they could be easily manufactured and sent across the globe. 
  • Sending components from India to other plants will reduce the time in manufacturing the components and the orders could be placed immediately. Same plants would not need to be set up at all locations.

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