Ford to revive Chennai plant with ₹3,250cr investment
What's the story
Ford is gearing up to resume manufacturing at its Chennai facility with a massive investment of ₹3,250 crore. The move comes nearly four years after the US carmaker halted production in India after a three-decade-long stint. A Memorandum of Understanding (MoU) for powertrain manufacturing will be signed today between Ford and the Tamil Nadu government.
Production details
Planned capacity of 2,35,000 engines per year
The Chennai plant will be used for the production of next-generation engines. It will have a planned capacity of 2,35,000 engines per year by 2029. The revival of this facility is expected to create over 600 jobs in the region. The preparations for setting up this new engine line-up will begin later this year.
Strategic move
Decision comes despite US tariffs and Biden's push for manufacturing
Ford's decision to revive its Chennai plant comes despite the recent US tariffs and President Donald Trump's push for American companies to manufacture in the US. The company had been negotiating with the Tamil Nadu government for this revival since early this year, with some delays due to tariff-related issues under the new Trump administration.