Ford Motor Company said on Friday it plans to restart its factory in Chennai and use it for exports, marking the automaker’s intent to reenter the Indian market after announcing exit in September 2021.
Ford stopped production at the Maraimalai Nagar factory in August 2022. Kay Hart, president of Ford’s international markets group, said the company has submitted a letter of intent to the Tamil Nadu government. Two days ago Tamil Nadu Chief Minister M K Stalin visited Ford’s headquarters in Dearborn, Michigan, and urged its top management to restart production in his state.
“I am pleased to share that today (Friday) 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,” Hart said.
The Maraimalai Nagar factory will be repurposed to focus 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 Hart. “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.”
More information about the type of manufacturing and other details will be disclosed in due course.
The announcement reaffirms Ford’s commitment to India as a critical market for the company’s global operations, the company said. “Ford employs 12,000 people at its Global Business Operations in Tamil Nadu, a number expected to grow by 2,500 to 3,000 jobs within the next three years. Combined with the engine manufacturing operations in Sanand [Gujarat], India represents Ford’s second-largest salaried workforce worldwide.”