Ford to use Chennai manufacturing plant for exports

American automaker Ford Motor Company on Friday said it is preparing to utilise its Chennai manufacturing plant to roll out vehicles for exports, and has communicated the same to the Tamil Nadu government.

The company, which in 2021 had said that it would stop manufacturing vehicles in India, has submitted a Letter of Intent (LOI) to the Tamil Nadu government, confirming its intention to use the Chennai plant to manufacture for export.

The announcement follows a meeting between Ford leadership and Tamil Nadu Chief Minister MK Stalin as part of his visit to the United States, Ford 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," Ford International Markets Group President Kay Hart said.

Ford said the facility will be repurposed to focus on manufacturing for export to global markets, as part of the company's ambitious 'Ford+ growth plan'.

Further information about the type of manufacturing and other details will be disclosed in due course, the company added.

Ford said its latest announcement reaffirms the company's commitment to India as a critical market for its global operations.

The company currently employs 12,000 individuals in Global Business Operations in Tamil Nadu, a number that is expected to grow by 2,500 to 3,000 jobs within the next three years, it added.

"Combined with the engine manufacturing operations in Sanand, India represents Ford's second-largest salaried workforce worldwide," the company said.

In September 2021, after nearly three decades of struggling to make a mark in India, Ford Motor Co had announced that it would stop vehicle production at its two plants in the country and will sell only imported vehicles going ahead, as part of a restructuring exercise.

While the company sold its vehicle manufacturing plant at Sanand in Gujarat to Tata Motors, it could not wind down its vehicle and engine manufacturing in Chennai by the targeted timeline of the second quarter of 2022.