Ford Motor plans to restart manufacturing plant in Tamil Nadu

Ford Motor

Ford Motor on September 13 said it plans to restart a manufacturing plant for exports in Tamil Nadu, the company announced two days after meeting state chief minister M K Stalin, who said they were exploring the possibility of resuming operations.

The US-based carmaker said it has submitted a letter of intent to the state government.

"The move will see the facility re-purposed to focus on manufacturing for export to global markets," Ford said in a statement. The cars that Ford plans to make at the facility and other details will be announced later, the company said.

The state government said Ford's move was the culmination of year-long efforts. "It was not a sudden development but a gradual process driven by the chief minister Thiru. MK Stalin and executed by the minister for industries Dr. TRB Rajaa."

The efforts intensified in June 2023 to find use for the Ford facility in Maraimalai Nagar after several potential auto investors showed interest in acquiring the site for their operations, the government said.

On September 11, CM Stalin, who was on a visit of the United States, met officials of Ford Motor to discuss the possibility of reopening the automaker’s plant in Chennai, amid reports of the American company exploring a return to the Indian market.

Yesterday, Moneycontrol had reported that state government was keen to know if Ford was considering the restart of operations in its Chennai facility and the timelines for the same were also sought by the government officials.

“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!” the CM Stalin had said in a post on X.

Had a very engaging discussion with the team from @Ford Motors! Explored the feasibility of renewing Fords three decade partnership with Tamil Nadu, to again make in Tamil Nadu for the world!@TRBRajaa @Guidance_TN @TNIndMin #InvestInTN #ThriveInTN #LeadWithTN #DravidianModel pic.twitter.com/J2SbFUs8vv
M.K.Stalin (@mkstalin) September 11, 2024

Stalin was on a 17-day visit to the US to get fresh investments for the state.

The company exited India in 2021. The re-entry means new investments, a focus on electrics and sustainability and also work on production for exports, the report quoted sources as saying.

With Reuters input