Ford announces intent to restart manufacturing plant in Tamil Nadu for global exports
Sep 13, 2024
New Delhi [India], September 13 : US carmaker Ford on Friday announced its intent to restart operations at its manufacturing plant in Tamil Nadu.
The news was shared by Kay Hart, President of Ford's International Markets Group, through a LinkedIn post, where she revealed that the company had submitted a Letter of Intent (LOI) to the Tamil Nadu Government, outlining plans to repurpose its Chennai facility for export-focused manufacturing.
The decision follows several high-level discussions between Ford Motor Company and the Tamil Nadu government, including a recent meeting between Hart and Tamil Nadu's Chief Minister M K Stalin during his visit to the United States.
Hart expressed her gratitude for the support the government has extended as the company explored various options for the plant's future use. She noted that Ford intends to leverage Tamil Nadu's manufacturing expertise to serve new global markets.
Hart posted, "I am pleased to share that today we are announcing that we have submitted a Letter of Intent (LOI) to the Government of Tamil Nadu in India, outlining Ford's intention to utilize our Chennai plant for manufacturing for export. The decision follows multiple meetings with the Tamil Nadu Government, including one I had last week with the Chief Minister of the Government of Tamil Nadu as part of his visit to the United States. We appreciate their ongoing support as we have explored different options for the plant."
She further stated, "This step underscores our ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets. I know people will be curious, but we will have more to share about the type of manufacturing and which export markets we'll be focusing on, along with other details, in due course."
For right now, I'm excited that this decision will add to our growing employee base in Chennai; our global Ford Business Solutions team based there is already more than 12,000 strong and we are planning to increase that by another 2,500 to 3,000 team members in the next few years. When you add that with our engine manufacturing team in Sanand and our ongoing customer and dealer support team, India is Ford's second-largest employee base worldwide", she said.
Ford had ceased domestic production in India in 2021 due to challenges in scaling volumes in a market dominated by Asian manufacturers.
By 2022, the company had fully pulled the plug on its export operations as well, effectively exiting the Indian market, which is the third-largest globally. However, with this new announcement, Ford aims to re-enter the market through exports.
Ford's Chennai facility had previously been a key production hub for the company, manufacturing both cars and engines.
The plant's revival, however, will now focus on global markets, as Ford pivots its strategy to leverage India's competitive manufacturing capabilities for export purposes.
While specific details regarding the models to be produced and the target export markets remain under wraps, Hart assured that further announcements will be made in due course.
