Chennai: Tamil Nadu Chief Minister M K Stalin, on Wednesday, met representatives from Ford Motors in the United States and explored the feasibility of renewing the “three-decade partnership” between the company and the state, as the automobile giant evaluates its plans regarding its manufacturing facility near Chennai.
Ford, which exited the country in September 2021 after failing to compete in the highly price-sensitive market despite investing $2 billion in three decades, continues to own the massive plant in Maraimalai Nagar, which has remained dormant since 2021. Ford sold its other Indian facility in Gujarat’s Sanand to Tata Motors.
“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,” Stalin posted on social media site X. The meeting took place in Chicago, where the Chief Minister is camping to garner investments into the state.
A statement from the state government said Stalin requested Ford to resume automobile production in Tamil Nadu and further expand its Global Capability Centre in Chennai. The Ford team included K Hart, Vice President (International Government Affairs), Matthew Kotlowski, Ford India Director (Government Affairs), and others.
Sources aware of Stalin’s discussions with Ford told DH that the company is adopting a “wait and watch” policy with regard to its plant in Chennai and might take a “definitive decision” on the issue in the next couple of months, possibly after the US Presidential election.
“The company is evaluating the global market and its decision vis-à-vis the India plant will purely be plugged into the above factor. If Ford decides to re-open the facility, it would only be to manufacture vehicles for the export market, not domestic market,” the person said.
When contacted, a spokesperson for Ford India told DH that they continue to explore suitable alternatives for the Chennai plant. “We have nothing further to add at this stage,” the spokesperson added.
Ford had in 2022 indicated that it might enter the Indian market yet again with a couple of electric vehicle (EV) models and utilise the Maraimalai Nagar plant but went back on its decision the same year.
The company was also in talks with JSW Group in 2023 to sell the plant but the deal was called off at the last minute, while Vietnam’s VinFast considered buying the facility before setting its shop in Thoothukudi in southern Tamil Nadu. At one point, Morris Garages of the UK was also interested in buying the plant, but none of the deals came through.