Corporate

Ford to Restart Manufacturing in Tamil Nadu After Nearly Two Years of Standstill

The automaker’s decision has come after the Tamil Nadu Chief Minister’s recent visit to Ford Motor in US

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American automaker Ford, on September 13 has announced that it is likely to restart car production in Tamil Nadu. The automaker recently submitted a letter of intent (LOI) to the Tamil Nadu government, highlighting its intention to utilise its Chennai plant for manufacturing for exports. 

“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,” said Ford International Markets Group President Kay Hart, as reported by PTI. The carmaker, while highlighting the company’s ‘Ford+growth plan’, said that the key focus will be in producing cars for export to global markets. 

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The move comes just days after the Tamil Nadu chief minister, M.K. Stalin, visited Ford Motor Company in the US and proposed the carmaker resume production in the state. 

“Explored the feasibility of renewing Ford’s three-decade partnership with Tamil Nadu to again make in Tamil Nadu for the world,” said M.K. Stalin in a post on X. 

The automaker currently employs 12,000 individuals in global business operations in Tamil Nadu. With the recent development, the number is likely to increase by 2,500 to 3,000. 

Ford forayed into the Indian automaking industry in 1995 in collaboration with Mahindra & Mahindra. The company continued its operation for nearly 25 years in the country.

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It’s decision to shut down business in India was stimulated by the global auto industry’s supply chain disruption and shortage of semiconductors. Moreover, the company was already facing losses of nearly $ 2 billion over the past 10 years, and demand too witnessed a slowdown.Consequently, the company stopped the production of cars on July 20, 2022.  

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