Ford to restart manufacturing of vehicles in Chennai plant after 3 years

CHENNAI: After months of negotiations, Ford on Friday announced that it was coming back to Tamil Nadu. The company said it has submitted a Letter of Intent (LOI) to the Govt of Tamil Nadu, confirming its intention to utilise its Chennai plant for manufacturing for export. TOI broke this news in the story titled “Ford driving back to India, Stalin holds talk with co” in the Chennai edition dated September 12. The current announcement by the company follows a meeting between Ford leadership and Tamil Nadu chief minister MK Stalin as part of his US tour.

Ford called its plans a “strategic move” which it said, “will see the facility repurposed to focus on manufacturing for export to global markets, as part of the company’s ambitious Ford+ growth plan.” Kay Hart, president, Ford International Markets Group, who was present at the meeting with TN CM in Chicago earlier this week, said: “We are grateful for the ongoing support from the Tamil Nadu Govt as we explored different options for the Chennai plant.

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.”

The company also said that the announcement reaffirms Ford’s commitment to India as a critical market for the company's global operations. Ford currently employs 12,000 individuals in Global Business Operations in Tamil Nadu, a number expected to grow by 2,500 to 3,000 jobs within the next three years. Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide. “Ford also continues to serve its one million customers in India with comprehensive customer support, including service, aftermarket parts, and warranty support,” said the company statement.
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