Michael Boneham, Ford India’s President, may have traded the sun-kissed beaches of Sydney for the traffic snarls of India, but he isn’t complaining. Boneham is an Australian by birth and accent, but he is truly a world citizen, eager to absorb cultural experiences of all kinds.
His long years at Ford (he has been with the company since 1985!) have taken him to several countries — starting with the UK to roll out the Land Rover (now owned by the Tatas), to the bustling car manufacturing hub of Michigan to launch the iconic Mustang, followed by Thailand, where Boneham was responsible for manufacturing in the Asian region.
Today, India is his home, perhaps to the chagrin of his three boys in Australia who have had to spend their growing up years at boarding school without their father around.
Boneham has been in India for over five years, shuttling between the largest car market of Delhi and Chennai, which houses Ford’s manufacturing plant. “I have been trying to get to know India... understand its complexities and diversity but I haven’t understood it yet. No one can, really,” says Boneham, over lunch in his room at the plant.
Our eyes linger for a while on the large windows which overlook the sprawling factory. Ford, along with Hyundai, brought back the auto manufacturing culture to Chennai (after Standard Motors closed down) with Ford’s huge plant at Maraimalainagar on the outskirts of the city kicking off in 1996.
“It’s been a tremendous journey,” Boneham interrupts our reverie. He tastes the spicy tomato soup that is being served with great relish. It is obvious Boneham has got used to the hot flavours of India. And yet he cannot quite digest the policy uncertainties of the Indian government.
Boneham has very strong views on the debate to slap a higher duty on diesel cars. “You do not penalise one industry because of a subsidy in another. Instead, you must address the concerns of the industry, the farmers and transporters,” says Boneham, who has had several meetings with the finance ministry on this, as an executive member of the industry body SIAM.
"If the price of small cars goes up by Rs 80,000, it just puts diesel vehicles beyond the reach of many. The government is looking to make manufacturing a significantly greater contributor to GDP. The last thing they want to do is to damage the 22 per cent of contribution from automobiles. One job at Ford creates four jobs outside in the supply chain.”
Today, the Ford plant is home to 5,000 workers, engaged in the company’s small-car mantra. But it took a while before Ford hit the sweet spot with Figo.
“We tried to bring in European vehicles into the Indian market but it didn’t work. In India it is not just about the purchasing experience, it is also about cost of ownership and value for money. It took us time to learn this, but once we learnt we adjusted quickly. Figo is proof of that,” says Boneham.
Today, Figo, a car developed in India for the Indian market, is being exported to over 37 countries. “Figo is going strong; it just crossed 2 lakh in sales, including exports. About 65 per cent of Figo purchasers are first-time car buyers.”
But the job is only half done, says Boneham. Ford still needs to change its perception of being an expensive brand, he says, tucking into the spartan yet tasty vegetarian meal of dal-roti , fried rice and vegetables served up from the office cafeteria.
Driven by localisation
An important part of keeping prices competitive is component localisation. Ford sources 70-80 per cent of its parts locally. “It is difficult to go beyond 90 per cent because the black box technology still comes from Europe. But electronics is an exciting opportunity for India,” says Boneham. The coming years will see Ford live up to its promise of eight new products by mid-decade. Up next is Ecosport, in the compact SUV category that is seeing plenty of action in the market.
In fact, most products in the pipeline will be in the small car space, says Boneham. “It would be foolish to think otherwise, because this is where the volume is.” Some lessons are not forgotten easily.
But no more “exclusive” products for India, Boneham is emphatic. The upcoming vehicles are all global cars “adjusted for India for suspension, ride height, and so on. Consumer needs and demands have evolved, thanks to technology. Today, what is available globally is just a micro second away in India. It was not so five years ago.”
The voice of India will be heard, assures Boneham. “Cars are being developed globally with inputs from Ford India research. Research in India is bigger than ever before.”
As Ford readies itself for its second plant in India at Sanand, Gujarat, Boneham has more city-hopping to do. (Boneham convinced his company board for an additional billion dollar investment in India.)
With many OEMs and component suppliers moving up there, an entire ecosystem is developing in and around Sanand. A fourth auto hub is emerging in the country to cater to the growing needs of an aspirational middle class, says Boneham.
From now to 2020, the number of new vehicles in the country would have tripled to nine million, driven by the growing aspirational middle class. “It will be a big challenge but it will happen. We might as well accept it,” says Boneham.
What the country needs is “a sensible multi-faceted flexible transport system.”
And not just roads. “We need overhead rail systems, good public transport, cars may be used for weekends. Whatever it is, we need to deliver this as a community.”
hr in top gear
Shifting gears a bit, Boneham talks about what drives his leadership skills. It is the little things that make a big difference, says Boneham. Having started his Ford stint in Australia in human resources, Boneham is very much the people’s person.
“Ford does not believe in hiring contract workers. We want our employees to have a connection with the company,” says Boneham. And that means spending time with people, listening to their needs, he adds. It may sound elementary but you have to keep working on relationships. “This doesn’t mean we will never have problems. Labour issues will come and go, but the nature of what happened in Manesar is an extreme.”
Boneham says he is a “situational” leader and does not always go by consensus. “As an extreme example, if this place is burning down, I have to act, not have a committee meeting. Sometimes I consult with teams and other times I simply delegate decisions to others.”
Today, Ford India is cash positive, but the journey, in some sense, has only just begun. Will Boneham be around to steer the Sanand project? He isn’t quite sure. “This is for the corporation and me to decide,” says Boneham, declining the sweets served in the end. (Got to watch out, though Indian sweets are a delight, he chuckles).
The man has obviously spent a lot of time away from family; his wife, Kate, comes and spends time in India on and off. But his boys — Sam, Damon and Joseph (Joe, as Boneham fondly calls him) — aren’t content with the sporadic holidays with their father.
“Six months ago, we went to Kashmir. It’s a beautiful place, especially the Pahalgam rivers,” says Boneham. He enjoys living in India and its diverse beauty, but separation from family is a tough challenge.
Meanwhile, there is the Boxing Day cricket match to look forward to when Australia takes on South Africa. Boneham’s boys have a date with daddy.