Ford re-enters India with focus on exports
What's the story
Ford, the renowned American automaker, has announced plans to resume operations at its facility in Chennai, Tamil Nadu. The company is known for its popular SUV models like the Endeavour and EcoSport. This decision comes after Ford's exit from the Indian market in 2021 due to falling sales. At that time, it had two plants in India. One was sold to Tata Motors while plans were made to close down the second one.
Revival plan
Ford's intent to restart Chennai plant
Ford was unable to cease its vehicle and engine production in Chennai by the second quarter of 2022 as initially planned. Earlier today, the company submitted a letter of intent to the Tamil Nadu government, stating its plans to use the Chennai facility for manufacturing exports. This announcement follows a recent meeting between Ford executives and Tamil Nadu Chief Minister MK Stalin during his US visit.
Strategic move
Ford's commitment to India and future plans
Ford International Markets Group President Kay Hart stated, "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 company plans to repurpose the facility for manufacturing exports as part of its Ford+ growth strategy. Further details about the type of manufacturing and other specifics will be disclosed later.
Job growth
Ford's employment prospects and global presence
Ford currently employs 12,000 individuals in Global Business Operations in Tamil Nadu. This number is projected to increase by 2,500 to 3,000 jobs within the next three years. Along with its engine manufacturing operations in Sanand, India represents Ford's second-largest salaried workforce worldwide. The company's re-entry signifies new investments with a focus on electrics and sustainability as well as production for exports.