The plant located in Tamil Nadu has found several Auto giants as prospective buyers, one of whom is Tata Motors
The industries minister of the State of Tamil Nadu stated about foreign carmakers interest in acquiring Ford Motor Co’s manufacturing plant, located therein. The announcement which was made on Thursday also named the Tata group as one of the prospective clients eyeing to take over the facility and that talks are in process with the company.
The announcement came as a follow-up of Ford’s decision to discontinue its production process in India which was formally communicated in September, due to lack of profitable prospects herein the country. The automotive giant expects to shut down its operations by winding up its vehicle and engine manufacturing unit in Tamil Nadu by 2022.
Thangam Thennarasu, industries minister of Tamil Nadu told news agency and media platform Reuters that preliminary talks are going on with companies and corporations and that further developments are yet to be confirmed. He further added that Ford Motor Corp reserves the right to decide upon the company it intends to enter in a commercial agreement and that the government is just facilitating talks between the companies.
Speaking about Tata Group’s interest in buying the plant, the minister also said that the representatives from the company have already met the state’s chief minister and have also visited the plant for an initial recce, but further updates are yet to surface.
As of now, Ford India intends to wind up another factory situated in Gujarat by the fourth quarter of 2021 along with the plant located in Tamil Nadu by 2022.