According to people familiar with the matter, US manufacturer Ford plans to convert its idle Chennai plant into a facility for producing and exporting engines. Although it excludes the manufacture of automobiles in India, this action represents a major shift in Ford's global supply chain strategy.
In 2021, the business stopped making cars in India, and in 2022, it left the market. Since the middle of 2022, its facility in Maraimalai Nagar, close to Chennai, has not been in use. But according to government insiders, high-level talks between Ford's senior executives and the Tamil Nadu government have reiterated the carmaker's dedication to India.
"Senior executives at Ford have had high-level discussions with the Tamil Nadu government recently where they reiterated their commitment to India," said another source, verifying that the plant would produce engines.
As demonstrated by its activities in Sanand, Gujarat, Ford has an export-driven business model that is consistent with this initiative. Ford has since turned its attention to export-oriented production, notwithstanding its earlier exploration of introducing electric vehicles in India. This strategic move highlights Ford's sustained participation in the Indian industrial environment, and formal announcements are anticipated soon.
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