Ford Plans to Revive Chennai Plant for Export Manufacturing

Ford has announced that it will repurpose its Chennai manufacturing plant for export operations, signaling a renewed commitment to India. This follows a meeting between Ford leadership and Tamil Nadu Chief Minister MK Stalin. The plant will play a key role in Ford's global 'Ford+ growth plan,' creating thousands of new jobs.

American automaker Ford has announced plans to repurpose its Chennai manufacturing plant for export operations, notifying the Tamil Nadu government of its intentions.

In 2021, Ford had declared it would cease manufacturing vehicles in India, but a recent Letter of Intent submitted to the Tamil Nadu government signifies a strategic shift.

The move arises from a meeting between Ford's leadership and Tamil Nadu Chief Minister MK Stalin during his U.S. visit, according to a company statement.

Kay Hart, President of Ford International Markets Group, emphasized that this step highlights Ford's ongoing commitment to leveraging Tamil Nadu's manufacturing expertise for global markets.

As part of Ford's 'Ford+ growth plan,' the Chennai facility will now focus on export manufacturing, though specific manufacturing details will be revealed later.

Ford's decision underscores India's significance in the company's global operations, with anticipated job growth of 2,500 to 3,000 in the next three years.

Currently employing 12,000 people in Global Business Operations in Tamil Nadu, Ford noted that India represents its second-largest salaried workforce worldwide.

In September 2021, Ford had announced it would halt vehicle production in India after struggling to establish a foothold over nearly three decades.

While it sold its Sanand plant to Tata Motors, the company had not yet phased out its Chennai operations by the targeted timeline in 2022.

(With inputs from agencies.)