Tuesday, December 10, 2024
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Ford announces plans to restart manufacturing plant in Tamil Nadu for global exports

Ford Motor Company announced on Friday its intention to resume operations at its manufacturing plant in Tamil Nadu, marking a significant shift in its strategy in the Indian market. The American automaker plans to repurpose the facility for production aimed at international markets.

Kay Hart, President of Ford’s International Markets Group, shared the update via LinkedIn, revealing that Ford has submitted a Letter of Intent (LOI) to the Tamil Nadu government. The LOI outlines Ford’s proposal to utilize the Chennai plant for manufacturing vehicles intended for export.

The decision follows a series of high-level discussions between Ford and Tamil Nadu officials, including a recent meeting between Hart and Chief Minister M.K. Stalin during the latter’s visit to the United States.

Hart commented, “I am pleased to share that we are announcing our intention to repurpose the Chennai plant for export-focused manufacturing. This follows multiple meetings with the Tamil Nadu Government, including one last week with the Chief Minister. We appreciate their continued support as we explored various options for the plant.”

She further emphasized Ford’s commitment to India, stating, “This step highlights our dedication to leveraging Tamil Nadu’s manufacturing expertise to serve global markets. While we are not yet ready to disclose specific details about the types of vehicles or target markets, more information will be provided in due course.”

In addition to the manufacturing plan, Hart noted Ford’s expanding presence in Chennai, where the company’s global Ford Business Solutions team employs over 12,000 people and plans to add another 2,500 to 3,000 employees in the coming years.

Ford had ceased domestic production in India in 2021 and exited the export market in 2022, stepping away from a market dominated by Asian competitors. The company’s new strategy will refocus the Chennai facility on producing vehicles for export, with further details to be announced in the future.

The Chennai plant, which previously manufactured cars and engines, will now play a crucial role in Ford’s renewed approach to the global automotive market.

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