Ford planning its comeback in India by reopening its Chennai plant 

By Staff Report September 16, 2024 11:56 am IST

Ford will use the manufacturing plant to focus on exports for global markets. 

Ford has submitted a Letter of Intent (LOI) to the Government of Tamil Nadu, confirming its intention to utilise the Chennai plant for manufacturing and export. The announcement follows a meeting between Ford leadership and the Honorable Chief Minister of the Government of Tamil Nadu as part of his visit to the United States. This strategic move will see the facility repurposed to focus primarily on manufacturing for export to global markets, as part of the company’s ambitious Ford+ growth plan.

“We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant,” said Kay Hart, President, Ford International Markets Group. “This step aims to underscore our ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets.”

Further information about the type of manufacturing and other details will be disclosed in due course.

Ford had halted its manufacturing in 2021, and the recent announcement reaffirms Ford’s commitment to India as a critical market for the company’s global operations. Ford currently employs 12,000 individuals in Global Business Operations in Tamil Nadu, a number expected to grow by 2,500-3,000 jobs within the next three years. Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide.