On September 13, Ford Motor announced plans to restart its manufacturing facility in Tamil Nadu, focusing on producing vehicles for export markets. This announcement comes just two days after a meeting between Tamil Nadu Chief Minister M.K. Stalin and Ford officials during the CM’s visit to the United States. The American automaker submitted a letter of intent to the Tamil Nadu government, signaling its commitment to resuming operations at the plant, which had previously been shut down.
Ford stated in a press release, “The move will see the facility re-purposed to focus on manufacturing for export to global markets.” The company did not provide details on the specific models it plans to manufacture at the plant but mentioned that more information would be released in the near future.
The state government of Tamil Nadu said the decision of Ford to recommence operations was the culmination of efforts undertaken for a whole year to find a new purpose for the manufacturing plant located in Maraimalai Nagar near Chennai. After Ford shut down its manufacturing operations in India, the state government had been holding active discussions with various potential investors regarding the facility. The factory had been idle since September 2021, when Ford announced its decision to pull out of the Indian market, citing unprofitability and growing competition.
“It was not a sudden development, but it was a gradual process driven by the chief minister, Thiru. M.K. Stalin, and executed by the minister for industries, Dr. TRB Rajaa,” the state government explained in its statement.
It was until June 2023 that concerted efforts for the revival of the plant gained momentum when several automotive investors expressed interest in taking over the location for their various operations. The government then planned to utilize the infrastructure and skilled workforce of the facility for new investments. CM Stalin, who is on an official tour to the United States, met senior executives of Ford Motor Co on September 11 to discuss the reopening of the automaker’s Chennai facility. The meeting was held amidst growing reports that Ford was having second thoughts on its decision to permanently leave the Indian market and was looking at partly resuming its manufacturing operations -mainly for export purposes.
Following the meeting, CM Stalin expressed optimism about Ford’s return, posting on X (formerly Twitter), “Had a very engaging discussion with the team from @Ford Motors! Explored the feasibility of renewing Ford’s three-decade partnership with Tamil Nadu, to again make in Tamil Nadu for the world!”
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Source: Moneycontrol
News Desk
