Ford Announces Plans to Revive Tamil Nadu Plant for Export Manufacturing

Ford announced plans to restart operations at its Tamil Nadu manufacturing plant, focusing on export-driven production. The news, shared by Ford International Markets Group President Kay Hart, follows high-level discussions with the Tamil Nadu government. The revival aims to leverage India's manufacturing expertise for global markets.

Ford, the US-based automotive giant, revealed plans on Friday to revive its manufacturing facility in Tamil Nadu for export-oriented production. The announcement was made by Kay Hart, President of Ford's International Markets Group, via LinkedIn. Hart disclosed that a Letter of Intent (LOI) had been submitted to the Tamil Nadu Government outlining the company's strategies.

The decision is the culmination of extensive negotiations between Ford and the Tamil Nadu government, including a meeting between Hart and Chief Minister M K Stalin during his recent US visit. According to Hart, the support from the Tamil Nadu government was instrumental as Ford explored various options for the facility's future use. The company plans to leverage Tamil Nadu's robust manufacturing capabilities to cater to new global markets.

In her LinkedIn post, Hart wrote, "I am pleased to share that today we are announcing that we have submitted a Letter of Intent (LOI) to the Government of Tamil Nadu in India, outlining Ford's intention to utilize our Chennai plant for manufacturing for export. The decision follows multiple meetings with the Tamil Nadu Government, including one I had last week with the Chief Minister of the Government of Tamil Nadu as part of his visit to the United States. We appreciate their ongoing support as we have explored different options for the plant."

She added, "This step underscores our ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets. Specific details regarding the types of manufacturing and targeted export markets will be disclosed in due course."

Hart also highlighted that the plant's revival would boost Ford's employee presence in Chennai. "I am excited that this decision will add to our growing employee base in Chennai; our global Ford Business Solutions team based there is already more than 12,000 strong, and we are planning to increase that by another 2,500 to 3,000 team members in the next few years," she said.

Ford had stopped domestic production in India by 2021 and ceased export operations by 2022, exiting a market dominated by Asian manufacturers. With this new strategy, Ford aims to re-enter the Indian market through exports. The Chennai facility, previously a major production hub, will now focus on manufacturing for global markets. Further details on the models to be produced and targeted export markets will be shared in future announcements.

(With inputs from agencies.)