Ford said its latest announcement reaffirms the company’s commitment to India as a key market. (Photo: Shutterstock)
American automaker Ford said on Friday it is preparing to use its Chennai manufacturing plant to produce vehicles for export and has communicated this to the Tamil Nadu government.
The company, which in 2021 had said it would stop manufacturing vehicles in India, has submitted a Letter of Intent (LOI) to the Tamil Nadu government, confirming its intention to use the Chennai plant for export manufacturing.
The announcement follows a meeting between Ford officials and Tamil Nadu Chief Minister MK Stalin as part of his visit to the United States, Ford said in a statement.
“This step is intended to underscore our continued commitment to India as we look to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets,” said Kay Hart, president, Ford International Markets Group.
Ford said the strategic move will see the facility refocused to focus on manufacturing for export to global markets as part of the company’s ambitious “Ford+” growth plan.
However, he said more information on the type of manufacturing and other details would be revealed in due course.
Ford said its latest announcement reaffirms the company’s commitment to India as a critical market for its global operations.
The company currently employs 12,000 people in its Global Business Operations in Tamil Nadu, a figure that is expected to increase by 2,500-3,000 jobs over the next three years, it added.
“Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide,” the company said.
In September 2021, after nearly three decades of struggling to make a mark in India, Ford Motor Co announced that it would stop vehicle production at its two plants in the country and would sell only imported vehicles going forward, as part of a restructuring exercise.
While the company sold its vehicle manufacturing plant in Sanand in Gujarat to Tata Motors, it could not close its vehicle and engine manufacturing in Chennai within the expected time frame of Q2 2022.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 13, 2024 | 1:00 p.m. IS
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