Ford Motor In Talks To Restart Production In Tamil Nadu, Two Years After Exit

Ford Motor Company, which halted India operations in August 2022, is exploring the possibility of focusing on exports from the facility

Automobile giant Ford Motor Company is in discussions with the Tamil Nadu government to restart its operations at Maraimalai Nagar near Chennai, two years after ceasing production in India. The company, which halted operations in August 2022, is exploring the possibility of focusing on exports from the facility.

Tamil Nadu Chief Minister M.K. Stalin visited Ford's headquarters in Michigan on Tuesday, engaging with the company's top management to encourage the resumption of production. "Had a very engaging discussion with the team from Ford Motors. Explored the feasibility of renewing Ford's three-decade partnership with Tamil Nadu, to again make in Tamil Nadu for the world," Stalin shared on X (formerly Twitter).

Ford India initially announced its phased closure in September 2021, citing accumulated losses of $2 billion over a decade, during which the company held less than 2 per cent of India’s passenger vehicle market. Despite the closure, the company's presence in Chennai remains significant through Ford Business Solutions (FBS), which has been instrumental in the design and development of key models, including the F-Series, Explorer, Transit, and Ranger, over the past two years.

FBS operates through its Global Technology & Business Center in Chennai, employing 12,000 workers, and is poised to create an additional 3,000 jobs in the next three years. During the meeting, Stalin urged Ford to further expand its technology center in Chennai.

The Chief Minister’s US visit, aimed at attracting fresh investments to Tamil Nadu, also saw him extend an invitation to senior executives from IT Serve Alliance, a consortium of IT service companies for small and medium businesses in the US, to invest in the state. Agreements worth Rs 7,016 crore were signed with 16 leading global companies during the visit.

Stalin’s meetings with Ford executives included IMG President K. Hart, Vice-President for International Government Affairs Matthew Kotlowski, and Ford India Director Sripath Pat. Ford’s return to production in Tamil Nadu could mark a new chapter in the company’s relationship with the state, with a renewed focus on exports.

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