Ford had refused to promote The Chennai manufacturing facility to Sajjan Jindal’s JSW group, regardless of superior negotiations
“Ford right now introduced that it has submitted a letter of intent to the govt. of Tamil Nadu, confirming its intention to utilise the Chennai plant for manufacturing for exports. The announcement follows a gathering between Ford management and the chief minister of Tamil Nadu as a part of his go to to the US,” the corporate’s assertion stated.
TOI was the primary to report on Ford’s impending entry to India in its version dated August 3 this 12 months.
“We’re grateful for ongoing help from the Tamil Nadu govt as we explored totally different choices for the Chennai plant,” stated Kay Hart, president, Ford Worldwide Markets Group. “This step goals to underscore our ongoing dedication to India as we intend to leverage the manufacturing experience accessible in Tamil Nadu to serve new international markets,” the corporate stated, including that additional details about the kind of manufacturing and different particulars might be disclosed in “due course”.
Ford, which had invested over $2.5 billion in India and tasted success with merchandise reminiscent of Eco Sport mini-SUV and Figo small automotive earlier than quitting, now believes that Indian market and manufacturing right here will assist it navigate international enterprise as many markets within the West stagnate. Additionally, with China and Europe not being vital companies for the corporate, India is the place it’s pinning its hopes on. “More and more, the sensation is that it’s not proper to remain out of India, particularly because the model remains to be well-known to potential patrons,” a supply stated.
Ford couldn’t construct a stable enterprise case within the nation, regardless of being current right here for over three a long time (it first entered in 1995). The corporate did enterprise as a solo entity, and likewise in partnership with Mahindra & Mahindra. Nonetheless, the JVs didn’t work on two events.
Having didn’t make any influence alone, the corporate had first introduced its exit in September 2021, earlier than making a re-entry in February 2022 when it bagged advantages underneath the production-linked incentive (PLI) scheme for EVs. Nonetheless, it quickly introduced a withdrawal in Could 2022, probably discovering it extra viable to promote the factories than working a loss-making enterprise.
