CM Stalin invites Ford to resume production at plant near Chennai

CHENNAI: Seeking to renew Tamil Nadu’s vaunted partnership with auto major Ford, which led to Chennai’s emergence as an automobile hub over the years, Chief Minister MK Stalin on Wednesday met with senior executives of the American firm in the US and urged them to resume production at its unit near Chennai and expand their global technology centre here.

While the statement from the government was sketchy, a source aware of the efforts told DT Next that the company may restart its operations in the last quarter of 2024-25 or the first quarter of 2026.

"Had a very engaging discussion with the team from Ford Motors! Explored feasibility of renewing Ford's three-decade partnership with Tamil Nadu, to again make Tamil Nadu for the world," Stalin said in a social media post.

After Ford stopped production three years ago, BYD, Geely, JSW, Ashok Leyland and Mahindra & Mahindra were among the frontrunners to acquire the plant in Maraimalai Nagar. “But the rates were not competitive,” said the source, adding though the re-entry would not happen immediately, a soft MoU now would result in re-igniting the plant in the last quarter of 2024-25 or even Q1 of 2026.

Though shuttered, the plant is not abandoned, as it is still being “cleaned” with regular “dry run” on a single-shift basis. Around 10-15 staff on Ford rolls, including heads of HR, plant, facility management and safety, are manning the plant for now, while 35-40 people are on contract basis.

According to multiple auto industry experts DT Next spoke to, Ford’s decision to exit India, the third biggest market for cars, was a blunder. This time, it may focus on niche products. With electric vehicles gaining traction across the world, Ford could also be looking at India as a gateway for exports.

“The plant is active. It could look at exports or getting one model here, owing to the zero depreciation aspect,” said an industry veteran, noting that it may even consider partnering with BYD, which had to abandon its plan to take over the plant after the Galwan clash.

Meanwhile, Stalin also met with the senior executives of IT Serve Alliance and requested them to make new investments in Tamil Nadu.

IT Serve Alliance is the largest consortium of IT service companies for small and medium businesses in the US, operating with 2,400 member companies across 23 states. The alliance supports business-friendly policies, enhances networking opportunities, and improves local communities through CSR and STEM initiatives. It also provides legal assistance for high-performance employee immigration, the government release added.

Chief Minister Stalin-led business delegation comprising Industries Minister TRB Rajaa, Industries Secretary V Arun Roy and managing director of Guidance Tamil Nadu V Vishnu has so far signed agreements worth Rs 70.16 billion with 16 leading global companies in San Francisco and Chicago, besides extending invitation to senior executives of various top global companies to invest in the State.

READ HERE: Too many challenges on Ford front