Ford plans to restart making cars from plant near Chennai

CHENNAI: Three days after Chief Minister MK Stalin invited Ford to return to Tamil Nadu during his US visit, the automaker said it is planning to resume manufacturing in the state for exports.

Ford Motor on Friday said it has submitted a letter of intent to the state's government in this regard. The move will see its Maramalai Nagar plant in Chengalpattu district, located about 45 km from here, being re-utilised to focus on manufacturing for export to global markets, the company stated.

Details on the cars that Ford plans to make at the facility near Chennai will be announced later, it added.

The US automaker stopped producing cars for domestic sale in India in September 2021 after nearly three decades, as it was struggling to boost sales in a market dominated by Asian rivals. It also pulled the plug on exports the following year, exiting the world's third-largest car market. It then announced that it would sell only imported vehicles going ahead as part of the restructuring exercise.

Speaking about their plans, Kay Hart, president, Ford International Markets Group, said in a statement, “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 decision follows multiple meetings with the Tamil Nadu Government, including one I had last week with the Honorable Chief Minister of the Government of Tamil Nadu as part of his visit to the United States."

She added that Ford was grateful for the Tamil Nadu government's consistent support while the automaker explored different options for the Chennai plant.

Meanwhile, State Minister for Industries T R B Rajaa took to social media to share Friday's news. "A year of constant interactions and consistent pitches under the guidance of our CM Tamil Nadu M K Stalin have today resulted in the return of Ford Motor Company to Tamil Nadu. Our CM's efforts to showcase TN's manufacturing prowess, its abundant talent pool and the efforts he has taken to reposition Brand Tamil Nadu in its rightful NumeroUno place has yielded rich dividends." he said on X.

The minister recalled that he had initiated talks with Ford Motor USA on the future of the facility in Tamil Nadu and the associated land during a visit to the US in July last year. Several potential auto investors had expressed interest in acquiring the Maraimalai Nagar site for their operations, he added.

The minister went on to add that more talks on the matter were held again between October and November last year. Then in July this year, he visited Ford's main factory in Dearborn, Michigan, near Detroit, where the minister met with Ford’s leadership and highlighted Tamil Nadu's growing EV ecosystem with Vinfast and Tata JLR choosing the state for their new plants.

This visit was followed by Chief Minister M K Stalin's in-person assurance to Ford’s leadership a few days ago that the Government of Tamil Nadu would wholly support their return for a smooth reintegration into the state’s automotive landscape.

On September 10, CM Stalin had called on Ford officials including Kay Hart in Chicago, urging them to revive car manufacturing and expand their global (technology/business) centre in Chennai, also renewing their three-decade partnership with the State.

The follow ups by the Minister and the CM's personal backing is what may have convinced Ford to consider restarting manufacturing in India, sources said.

Ford currently operates a Global Business Centre in the city, employing about 12,000 people which is expected to grow by 2,500 to 3,000 within the next three years.

(With inputs from PTI)