Ford to commence EV production in 2025; possibly batteries too
The US auto major, which announced its intent to revive its Chennai plant after a "personal assurance" from Chief Minister MK Stalin in Chicago a few days ago, would most likely utilise the Maraimalai Nagar plant for manufacturing EVs with focus on exports.
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CHENNAI: Ford Motors, which announced its return to Tamil Nadu, is likely to commence production of electric vehicles (EV) and possibly battery manufacturing in its soon-to-be revived plant near Chennai.
The US auto major, which announced its intent to revive its Chennai plant after a "personal assurance" from Chief Minister MK Stalin in Chicago a few days ago, would most likely utilise the Maraimalai Nagar plant for manufacturing EVs with focus on exports.
A day after Kay Hart, president, Ford International Markets Group, announced that the company has submitted a Letter of Intent to the Tamil Nadu government to utilise its Chennai plant for export-oriented manufacturing, highly placed government sources confirmed to DT Next that the auto major is now keen on manufacturing export-oriented EV models from the Chennai plant, which may commence in 2025 itself, and that it might consider battery manufacturing in the future.
The breakthrough was achieved owing to the perseverance of the Tamil Nadu government, which pushed the automobile manufacturer for over a year to either revive the unit or relinquish the vast land parcel given to it by the State.
"It was clear even before the CM's US business trip that they are going to do it. They wanted a personal assurance from the CM," sources said, adding that one of the reasons for Ford's confidence in Tamil Nadu was the support rendered by the State government when it exited in 2021.
Sources privy to the negotiations added that an undecided Ford was on the brink of striking a deal with JSW to sell the plant (land) sometime in October- November 2023. "Even Vinfast was eyeing the land parcel. Then Ford took a U turn. Every month, the Industries Department insisted that the value of the land must be unlocked or they must move on and part with the land.”
Amid interests from several potential auto investors to acquire the site, Minister Rajaa undertook a visit to San Francisco in July 2023 and initiated talks with Ford on the future of the facility and the associated land. Ford requested six months to evaluate the situation and return with a decision. By early 2024, there were reports that Ford was leaning toward restarting its operations at the facility.
In July 2024, Dr. Rajaa visited Ford's main factory in Dearborn, Michigan, near Detroit and highlighted the rapid advancements in Tamil Nadu's automotive sector, especially in EVs, with Vinfast and Tata JLR choosing the State for their new plants.
Also Read: High hopes on Ford's return to TN, but many challenges on the path to resurrection
Finally, the deal clincher came when the Chief Minister personally assured Ford's leadership that the Tamil Nadu government would fully support their return and work closely with them to ensure a smooth reintegration into the State's automotive landscape.