Based on authorities sources, eorts to seek out takers for the Ford facility in Maraimalai Nagar intensified in June 2023. File photograph
| Picture Credit score: The Hindu
Ever since Ford introduced its determination to stop operations at its plant close to Chennai, the State government didn’t need to surrender. Although many different companies evinced curiosity to choose up the ability, negotiations have been silently taking place with Ford.
Based on authorities sources, the federal government’s efforts to seek out use for the Ford facility in Maraimalai Nagar intensified in June 2023, when a number of potential auto buyers expressed curiosity in buying the positioning for his or her operations.
Officers from the Tamil Nadu authorities have been in contact with Ford staff constantly. It’s learnt that in July 2023, Industries Minister T.R.B. Rajaa throughout a go to to San Francisco, initiated talks with Ford USA on the way forward for the ability and the related land. Ford requested six months to guage the state of affairs and return with a call.
In October-November 2023, a number of rounds of discussions have been held between the Industries Division and Ford concerning doable methods ahead, each on-line and in individual in Chennai, however no determination was taken. In early 2024, there have been stories that Ford was involved in restarting its operations on the facility. “We defined to them in regards to the Electrical Automobile (EV) market that’s booming within the State and in regards to the greenfield initiatives corresponding to VinFast, which is arising at Thoothukudi,” stated one other official.
And now after the Chief Minister’s go to to the U.S., Ford has come out with the announcement to restart manufacturing on the facility for exports. Industries Minister T.R.B. Rajaa stated: “This final result was not an in a single day determination however the results of year-long discussions, negotiations, and diligent follow-ups with Ford’s management within the U.S. and in India.”
“I visited U.S. twice final 12 months to carry discussions. Bringing Ford again signifies a exceptional turnaround for Tamil Nadu’s industrial sector. It’s not simply Ford, we have now been working relentlessly to draw funding throughout a number of domains,” he stated. “However seeing Ford return to Chennai provides one other contemporary enhance to the already primed auto ecosystem in Tamil Nadu,” he added.
The return of Ford would additionally assist the MSME ecosystem within the State. “With Ford’s re-entry, Tamil Nadu’s MSME ecosystem will get one other shot within the arm. This can give a right away enhance to the native provide chain and provide contemporary alternatives for these companies to scale up with superior manufacturing practices and extra value-added jobs,” he identified.
In 2021, carmaker Fords determined to wind down its engine and car assembling plant at Maraimalai Nagar close to Chennai, by the second quarter of 2022. At that time of time, the Chennai plant had round 2,600 workers. On September 9, 2021, Ford staff bought a message which stated: “Ford India will stop manufacturing autos on the market in India instantly; manufacturing of autos for export will wind down at Sanand car meeting plant by This fall 2021, and Chennai engine and car meeting vegetation by Q2 2022.”
Throughout that point a press release from Ford Motor Firm quoted its president and CEO Jim Farley as saying, “Regardless of investing considerably in India, Ford has amassed greater than $2 billion in working losses over the previous 10 years, and the demand for brand new autos has been a lot weaker than the forecast.” A couple of months later the plant was ultimately closed.
Based on a press release issued by Ford on Friday September 13, 2024, India represents Ford’s second-largest salaried workforce worldwide. Ford additionally continues to serve its a million prospects in India with complete buyer assist, together with service, aftermarket elements, and guarantee assist.
Printed – September 14, 2024 03:41 am IST
