US automaker Ford Motor announced on Friday its plans to restart its manufacturing facility in Tamil Nadu, with the primary focus on exports. The company, which had exited India in 2021, has officially notified the Tamil Nadu government of this development.
Meeting with Tamil Nadu Chief Minister Sparks Re-entry
Ford's decision to re-enter the Indian market came after a meeting between its leadership and Tamil Nadu Chief Minister M K Stalin, who is currently on an official visit to the United States. The announcement was made public through a company statement, underscoring the significance of the meeting in Ford's decision-making process.
According to a Livemint report, Ford is currently in talks with JSW Group to discuss restarting its operations in India. This marks a pivotal step in the company’s strategy to re-establish itself in the Indian market after halting its vehicle manufacturing operations in 2021.
Official Intent Submitted to Tamil Nadu Government
Ford has submitted a Letter of Intent (LOI) to the Tamil Nadu government, expressing its intent to repurpose the Chennai facility for manufacturing vehicles primarily for export markets. This move is expected to showcase Ford’s renewed commitment to India’s manufacturing sector, particularly in Tamil Nadu.
“This step underscores our commitment to India as we plan to leverage Tamil Nadu’s manufacturing capabilities to serve new global markets,” said Kay Hart.
Ford’s Chennai plant will now be repurposed to focus on export-driven production as part of the company’s broader ‘Ford+ growth plan.’ However, specific details about the types of vehicles or products to be manufactured will be disclosed at a later date.
Ford's Continued Investment in India
Despite its earlier exit, Ford's latest announcement highlights India’s importance in its global operations. The company currently employs 12,000 individuals in its Global Business Operations in Tamil Nadu, with plans to add 2,500 to 3,000 more jobs over the next three years.
“Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide,” the company stated.
In September 2021, Ford decided to cease vehicle production in India after struggling for nearly three decades to gain a significant market share. The company sold its Sanand plant in Gujarat to Tata Motors but faced delays in winding down its Chennai operations, which were initially set to end by mid-2022.
With inputs from agencies
Image Source: Multiple agencies
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