It’s official, Ford to use Chennai plant for export production

Ford Motor Co on Saturday officially confirmed plans to restart its Chennai factory for export production. The company said it has submitted a Letter of Intent (LOI) to the Tamil Nadu government detailing its plans.

Top executives from Ford Motors on Saturday met state chief minister Stalin and submitted its proposal. The chief minister was on a visit to the US.

The decision to use the Chennai facility as an export hub is part of Ford Motor’s plan to refocus on global markets for growth.

Kay Hart, president, Ford International Markets Group said this has been made possible with support from the Tamil Nadu government as the company was was exploring other options.

This will benefit both Ford Motors as well as the Indian economy as the company leverages the India facility and the manufacturing expertise that is readily available, he added.

Ford, however, did not detail its production plans, saying that these will be disclosed in due course.

Ford, which currently employs 12,000 people in at its Chennai plant, considers India as a critical market for the company's global operations. It has proposed to expand the workforce by 2,500 to 3,000 over the coming years.

Together with its engine manufacturing facility in Sanand, Gujarat, this represents Ford’s second largest workforce after the United States.

Reports citing government sources in Tamil Nadu said Ford will be focusing on electric vehicle production at its Chennai facility and may also explore joint venture proposals.

Ford decided to stop car manufacturing in India, the world’s third-largest car market in 2021, due to poor market performance. Since then its Maraimalai Nagar facility in southern Chennai has been lying idle.

The carmaker, however, continues to serve its one million customers in India, with aftermarket service, supply of spares, and warranty support.