Ford Motors in Talks to Restart Chennai Plant for Global Exports

14 Sep 2024, 02:04 PM

Two years after winding up its India production, global automobile giant Ford Motor Company is in talks with the Tamil Nadu government to restart operations at Maraimalai Nagar near Chennai, where it will focus on exports.

The announcement follows a meeting between Ford leadership and the Honorable Chief Minister of the Government of Tamil Nadu as part of his visit to the United States.

This strategic move will see the facility repurposed to focus primarily on manufacturing for export to global markets as part of the company’s ambitious Ford+ growth plan.

Ford said it has submitted a letter of intent to the state’s government, two days after Tamil Nadu’s chief minister said that the two were in talks to restart manufacturing in the state for exports.

Ford has operated in India for over 25 years, the American automaker had stopped producing cars in the country for domestic sale in 2021 after struggling to boost volumes and pulled the plug on export car production there in 2022, effectively exiting a huge market dominated by Asian rivals.

“We are grateful for the ongoing support from the Tamil Nadu government as we explored different options for the Chennai plant,” said Kay Hart, President, Ford International Markets Group. “This step aims to underscore our ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets.”

Ford currently employs 12,000 people for its global operations in Chennai, and it is expected to employ 2,500 to 3,000 more people in the next three years. Also, Ford already has an engine manufacturing plant in Sanand, Gujarat.

Notably, India is the US automaker’s second-largest employee base worldwide.

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