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Ford Motor in Talks with Tamil Nadu Govt to Resume Production and Target Global Market

By Consultants Review Team Thursday, 12 September 2024

Two years after ceasing production in India, global automaker Ford Motor Company is in talks with the Tamil Nadu government to resume operations at Maraimalai Nagar near Chennai, where it would focus on exports. On Tuesday, Chief Minister Stalin visited Ford's headquarters in Michigan and met with top management, pressing the company to begin manufacturing.

"I had a very engaging chat with the Ford Motors staff. Stalin claimed in a post on the X platform that he had looked into the possibility of reviving Ford's three-decade collaboration with Tamil Nadu in order to manufacture in Tamil Nadu once more for the world."

Ford India announced the closure of its Chennai plant on September 9, 2021, and production would end in August 2022. This comes at a time when the city, through Ford Business Solutions (FBS), has emerged as the driving force behind key design and development parts of the US major's worldwide successful models over the last two years. According to FBS, the company's best-selling models worldwide, including the F-Series, Explorer, Transit, Ranger, and others, are getting a taste of India. This is through the "design and development of specific components"

FBS controls the company's global capabilities through its 12,000 personnel at the Global Technology & Business Center in Chennai. It plans to add 3,000 positions over the next three years. Stalin also encouraged the corporation to expand its global technological center there.

The CM also issued an invitation to senior executives from the IT Serve Alliance, a significant US consortium of IT service companies serving small and medium-sized businesses. He asked them to make new investments in Tamil Nadu. As part of his efforts to increase investment in the state, he made an official visit to the United States to lure investment to Tamil Nadu.

During this visit, 16 prominent global corporations signed agreements totaling Rs 7,016 crore in San Francisco and Chicago. Senior executives from prominent worldwide organizations were invited to invest in Tamil Nadu.

Ford IMG president K Hart, vice-president (international government affairs) Matthew Kotlowski, Ford India director (government affairs) Sripath Pat, and other executives also met with Stalin. IT Serve Alliance has 2,400 member companies across 23 states. The organization promotes business-friendly legislation and networking opportunities.

Ford discontinued production in India due to accumulated losses of approximately $2 billion over a decade. At the time, it controlled less than 2% of the country's passenger vehicle market with models such as EcoSport and Endeavour SUVs.

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