According to government sources, eorts to find takers for the Ford facility in Maraimalai Nagar intensified in June 2023. File photo
| Photo Credit: The Hindu
Ever since Ford announced its decision to cease operations at its plant near Chennai, the State government did not want to give up. Even though many other firms evinced interest to pick up the facility, negotiations were silently happening with Ford.
According to government sources, the government’s efforts to find use for the Ford facility in Maraimalai Nagar intensified in June 2023, when several potential auto investors expressed interest in acquiring the site for their operations.
Officials from the Tamil Nadu government were in touch with Ford team continuously. It is learnt that in July 2023, Industries Minister T.R.B. Rajaa during a visit to San Francisco, initiated talks with Ford USA on the future of the facility and the associated land. Ford requested six months to evaluate the situation and return with a decision.
In October-November 2023, several rounds of discussions were held between the Industries Department and Ford regarding possible ways forward, both online and in person in Chennai, but no decision was taken. In early 2024, there were reports that Ford was interested in restarting its operations at the facility. “We explained to them about the Electric Vehicle (EV) market that is booming in the State and about the greenfield projects such as VinFast, which is coming up at Thoothukudi,” said another official.
And now after the Chief Minister’s visit to the U.S., Ford has come out with the announcement to restart manufacturing at the facility for exports. Industries Minister T.R.B. Rajaa said: “This outcome was not an overnight decision but the result of year-long discussions, negotiations, and diligent follow-ups with Ford’s leadership in the U.S. and in India.”
“I visited U.S. twice last year to hold discussions. Bringing Ford back signifies a remarkable turnaround for Tamil Nadu’s industrial sector. It’s not just Ford, we have been working relentlessly to attract investment across multiple domains,” he said. “But seeing Ford return to Chennai gives another fresh boost to the already primed auto ecosystem in Tamil Nadu,” he added.
The return of Ford would also help the MSME ecosystem in the State. “With Ford’s re-entry, Tamil Nadu’s MSME ecosystem gets another shot in the arm. This will give an immediate boost to the local supply chain and offer fresh opportunities for these businesses to scale up with advanced manufacturing practices and more value-added jobs,” he pointed out.
In 2021, carmaker Fords decided to wind down its engine and vehicle assembling plant at Maraimalai Nagar near Chennai, by the second quarter of 2022. At that point of time, the Chennai plant had around 2,600 employees. On September 9, 2021, Ford workers got a message which said: “Ford India will cease manufacturing vehicles for sale in India immediately; manufacturing of vehicles for export will wind down at Sanand vehicle assembly plant by Q4 2021, and Chennai engine and vehicle assembly plants by Q2 2022.”
During that time a statement from Ford Motor Company quoted its president and CEO Jim Farley as saying, “Despite investing significantly in India, Ford has accumulated more than $2 billion in operating losses over the past 10 years, and the demand for new vehicles has been much weaker than the forecast.” A few months later the plant was eventually closed.
According to a statement issued by Ford on Friday September 13, 2024, India represents Ford’s second-largest salaried workforce worldwide. Ford also continues to serve its one million customers in India with comprehensive customer support, including service, aftermarket parts, and warranty support.
Published – September 14, 2024 03:41 am IST
