Ford plans to restart Chennai plant for exports, showing its strong commitment to India. This will help create 2,500 to 3,000 new jobs.
On Friday, American carmaker Ford announced plans to use its Chennai plant for exports and has informed the Tamil Nadu government about this decision. After stopping vehicle production in India in 2021, Ford has now submitted a Letter of Intent (LOI) to the state government, confirming it will use the Chennai factory for export purposes.
Ford’s announcement came after a meeting between its leaders and Tamil Nadu Chief Minister MK Stalin during his visit to the United States.
“This move shows our continued commitment to India. We plan to use the manufacturing skills in Tamil Nadu to serve new global markets,” said Kay Hart, President of Ford’s International Markets Group.
Ford also mentioned that this strategic decision is part of its larger ‘Ford growth plan’ and will focus on using the Chennai facility for making vehicles for export to international markets.
Ford stated that more details about the type of manufacturing and other specifics will be shared later.
The company also emphasized that this announcement reinforces Ford’s commitment to India as an important part of its global operations.
Ford currently has 12,000 employees in its Global Business Operations in Tamil Nadu, and this number is expected to grow by 2,500 to 3,000 jobs in the next three years.
The company also mentioned that, along with its engine manufacturing in Sanand, India is home to Ford’s second-largest salaried workforce in the world.
In September 2021, after nearly 30 years of challenges in India, Ford announced it would stop making vehicles at its two Indian plants and would only sell imported cars as part of a company restructuring plan.
Ford sold its vehicle manufacturing plant in Sanand, Gujarat, to Tata Motors. However, the company was unable to close its vehicle and engine manufacturing operations in Chennai.