New York:

The Trump administration’s tariff threats and animosity towards electronic vehicles are producing a “lot of cost and a lot of chaos” for Ford, the automaker’s chief executive said Tuesday.

While Trump has spoken about the priority of strengthening manufacturing in the United States, the administration thus far has been the source of tremendous “policy uncertainty” with constantly evolving tariff plans and a lack of clarity whether tax credits favoring EVs will be rolled back, he said.

Appearing at a financial conference, Jim Farley described Trump’s initial plan to enact 25 percent tariffs on Mexico and Canada as a disaster for US companies that operate across the region, while providing an unfair advantage to European and Asian automakers that also import to the United States.

Trump last week suspended the tariffs for 30 days following concessions from Mexico and Canada. But they have not been removed as a possibility by the Trump administration, which yesterday announced plans to enact 25 percent tariffs on steel and aluminum.

Farley said Ford buys most of those two metals from US firms, but that the company’s suppliers have international sources.

“So that price will come through, and there may be a speculative part of the market where prices come up because tariffs are even rumored,” Farley said.

“President Trump has talked a lot about making our US auto industry stronger, bringing more production here, more innovation,” Farley said, adding that these would be “signature accomplishments.”

But “so far what we’re seeing is a lot of cost and a lot of chaos,” he said.

Farley pointed to lingering questions about the Trump administration’s intentions on the Biden administration’s Inflation Reduction Act, which included tax incentives for consumer EV purchases and for the building of EV factories.

An executive order on Trump’s first day signaled the potential elimination of tax credits favoring EVs.

Farley said Ford had already “sunk capital” in major investments in Ohio, Michigan, Kentucky and Tennessee.

“Many of those jobs will be at risk if the IRA is repealed or if big parts of it is repealed,” Farley said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Chennai:

Automotive giant Ford Motor Company has announced its plans to resume operations in Tamil Nadu. The American automaker says it has submitted a ‘Letter of Intent’ to the Tamil Nadu Government. The development signals a positive turnaround after a brief hiatus.

Ford had ceased sales in India in 2021 and halted exports from the country in 2022.

This development comes on the heels of a productive meeting between Tamil Nadu Chief Minister M K Stalin and Ford’s leadership in the United States.

The automaker “will repurpose its Chennai plant to focus primarily on exports to global markets” according to its statement to NDTV. While specific details about the type of manufacturing activities are yet to be disclosed, Ford’s decision marks a strategic shift in its India operations.

Ford’s presence in Tamil Nadu has been substantial, with over 12,000 employees. The company’s plan to resume operations is expected to create an additional 3,000 jobs over the next three years.

However, industries department sources told NDTV that the Tamil Nadu government’s sustained efforts with Ford’s leadership, including two visits by Industries Minister T R B Rajaa to the United States since 2023, have highlighted the state’s rapid advancements in the automotive and electric vehicle sectors that persuaded the automaker. Ford had asked for 6 months to decide on its return to India.

M K Stalin’s visit and assurance of a smooth reintegration into the Indian market, sources said turned into a deal clincher.

Ford Motor held talks with Tamil Nadu to explore producing vehicles for export, chief minister MK Stalin said, potentially signalling that the US carmaker could restart production in India after exiting the country three years ago.

Ford stopped producing cars in India for domestic sale in 2021 after struggling to boost volumes and pulled the plug on exports in 2022, effectively exiting the world’s third-largest car market which is dominated by Asian rivals.

Ford sold one of its two plants in India to Tata Motors in 2023. Its other plant, which is in Chennai in Tamil Nadu state, was shuttered.

“Had a very engaging discussion with the team from Ford Motors. Explored the feasibility of renewing Ford’s three decade partnership with Tamil Nadu, to again make in Tamil Nadu for the world,” MK Stalin said in a post on X.

Had a very engaging discussion with the team from @Ford Motors! Explored the feasibility of renewing Ford’s three decade partnership with Tamil Nadu, to again make in Tamil Nadu for the world!@TRBRajaa@Guidance_TN@TNIndMin#InvestInTN#ThriveInTN#LeadWithTN#DravidianModelpic.twitter.com/J2SbFUs8vv

— M.K.Stalin (@mkstalin) September 11, 2024

Ford continues to explore suitable alternatives for its plant in Chennai, the automaker said in a statement.

Ford, which made its EcoSport and Endeavour SUVs in India, had a less than a 2% share of the country’s passenger vehicle market when it stopped production, having struggled for years to turn a profit.

When it stopped production, Ford said it had accumulated losses of more than $2 billion over a decade and demand for its new vehicles had been weak.

The decision to exit the market came after Ford and local automaker Mahindra & Mahindra failed to finalise a joint venture partnership that would have allowed the US company to continue making cars in India at a lower cost.

Ford continues to build engines for its Ranger pickup trucks at its factory in western India and source parts from local suppliers for global operations.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)