Ford to make India comeback. But…
Ford Motor Company announced on Friday its intention to recommence operations at a manufacturing facility in Tamil Nadu, India, marking a potential return to a market it had previously exited three years prior. The company has submitted a letter of intent to the state government, following discussions between the chief minister of Tamil Nadu and Ford regarding the resumption of manufacturing for export purposes.
Ford ceased domestic car production in India in 2021 due to challenges in increasing sales volumes and subsequently halted exports in 2022, thereby withdrawing from the world's third-largest automotive market, which is primarily led by Asian competitors.
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“We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant," said Kay Hart, president, Ford International Markets Group. “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."
Presently, Ford has a workforce of 12,000 in Global Business Operations located in Tamil Nadu, with projections indicating an increase of 2,500 to 3,000 jobs over the next three years. Alongside the engine manufacturing facilities in Sanand, India stands as Ford's second-largest salaried employee base globally. Further information about the type of manufacturing and other details will be disclosed in due course, says Ford.
(Read more: Tourists drive Ford Endeavour SUV into canal after Google Maps misguides)
In September 2021, Ford Motor Co declared its decision to cease vehicle production at its two facilities in India, following nearly thirty years of efforts to establish a presence in the market. The company will transition to selling only imported vehicles as part of a restructuring initiative.
Although Ford successfully sold its vehicle manufacturing plant located in Sanand, Gujarat, it was unable to complete the closure of its vehicle and engine manufacturing operations in Chennai by the intended deadline of the second quarter of 2022.
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