Ford Motor Company announced on Friday that it will use its Chennai manufacturing facility for vehicle exports, a decision communicated to the Tamil Nadu government. The move comes after it had previously declared in 2021 its plan to cease vehicle production in India.
The company has now submitted a Letter of Intent (LOI) to the Tamil Nadu government, confirming its plan to repurpose the Chennai plant for export production. This development follows a recent meeting between Ford executives and Tamil Nadu Chief Minister MK Stalin during his visit to the United States.
It’s International Markets Group President, Kay Hart, emphasized that this decision reflects Ford’s continued commitment to India, leveraging the state’s manufacturing capabilities to access new global markets.
The strategic shift will align with it’s ‘Ford+ growth plan,’ focusing the Chennai facility on exporting vehicles. Details regarding the specific types of vehicles to be manufactured and other related information will be provided in the future.
It’s announcement underscores its ongoing dedication to India as a crucial part of its global operations. The company currently employs approximately 12,000 people in its Global Business Operations in Tamil Nadu, with plans to increase this number by 2,500 to 3,000 jobs over the next three years.
India remains a key market for Ford, representing its second-largest salaried workforce globally, alongside its engine manufacturing operations in Sanand. In September 2021, Ford had announced the cessation of vehicle production at its Indian plants and a shift towards selling only imported vehicles as part of a restructuring plan. While Ford sold its Sanand plant to Tata Motors, the Chennai operations could not be fully phased out by the initially planned deadline of the second quarter of 2022.
