In Short:
Ford plans to restart manufacturing at its Chennai plant after halting operations two years ago. The company aims to focus on export-oriented production, leveraging local expertise for global markets. This move is part of Ford’s Ford+ growth strategy. While vehicle production ceased, Ford still employs 12,000 in IT roles and aims to add up to 3,000 more jobs in the next three years.
Ford Revives Manufacturing in Chennai: A Bold New Chapter
In an exciting turn of events, **Ford**, the famed American carmaker, has announced plans to reignite its manufacturing operations at its plant in **Chennai**, marking a significant comeback two years after it halted production in India. This decision comes after three decades of presence in the country and indicates a strategic shift in the company’s approach.
A Letter of Intent to Tamil Nadu
**Ford** has taken a proactive step by submitting a Letter of Intent (LOI) to the **Tamil Nadu Government**. This document outlines the company’s intent to use the Chennai facility primarily for **export-oriented manufacturing**. The announcement follows a productive meeting between **Ford** leadership and the Chief Minister of Tamil Nadu during his recent trip to the United States.
Embracing Global Opportunities
In her statement, **Kay Hart**, President of **Ford International Markets Group**, expressed enthusiasm about the move. “We intend to leverage the manufacturing expertise available in **Tamil Nadu** to serve new global markets,” she said, highlighting the company’s ambition to expand its global footprint.
The Significance of the Chennai Plant
The Chennai facility is set to play a central role in **Ford’s Ford+ growth plan**, focusing on producing vehicles specifically for international export markets. The renewed strategy aims to capitalize on cost competitiveness, which the Chennai operations can provide.
Clarifying the Transition
When questioned about the motivations behind this new direction—just months after exiting local manufacturing—**Ford’s** spokesperson shared insights with BusinessLine. They reaffirmed that restarting production for exports aligns seamlessly with **Ford’s** Ford+ global strategy, enhancing the company’s competitive edge in a rapidly evolving market.
Looking Ahead
As for the specific details regarding the nature of production—whether it will involve vehicles or engines—companies are yet to reveal their plans on staff hiring, vendor partnerships, and targeted export markets. More information is anticipated in the near future.
A Look Back: The 2021 Exit
In a significant shift in September 2021, **Ford** announced its withdrawal from vehicle manufacturing and sales in India, resulting in the closure of two plants—**Maraimalai Nagar** near Chennai and **Sanand** in **Gujarat**. While **Ford** managed to sell its Gujarat plant to **Tata Motors**, the Chennai facility remained unsold. By September 2023, a final settlement was reached with the **Chennai Ford Employees’ Union (CFEU)**, bringing closure to negotiations for severance packages for approximately 2,592 permanent workers.
Continuing IT Operations
Even though vehicle production has ceased, **Ford** continues to maintain its **IT operations** through **Ford Business Solutions**, employing around **12,000 people** in **Tamil Nadu**. The company has ambitious plans to add between **2,500 to 3,000 jobs** within the next three years, signaling a commitment to the local workforce.
Support for Indian Customers
With **engine manufacturing** still operational in **Sanand**, India remains **Ford’s** second-largest hub for salaried workers globally. The company continues to serve its one million Indian customers by providing aftermarket parts, warranties, and dedicated customer support.
