US automaker Ford may use its Chennai plant to manufacture and export engines

US carmaker Ford stopped automobile manufacturing in India in 2021.

Ford has reportedly finalised plans to utilise its dormant Chennai facility for manufacturing and exporting engines and related elements, in accordance to sources acquainted with the matter who spoke to ET.
The firm will reveal the specifics of this initiative within the second quarter of this yr. The plan excludes automobile manufacturing in India.
“Ford is going to be making engines at the Chennai plant,” confirmed one supply. “It (the facility) will be repurposed for export-focused production. This decision is part of Ford’s broader global strategy.”
US carmaker Ford stopped automobile manufacturing in India in 2021 and exited the next yr, having maintained a restricted market presence all through its 25-year operation within the quickly increasing South Asian automotive market.

Ford’s India plans

The Maraimalai Nagar facility close to Chennai has remained inactive since mid-2022.
Although discussions about reviving the plant had been ongoing, latest hypothesis urged Ford would possibly abandon its India plans, significantly contemplating the Trump administration’s home manufacturing initiatives and implementation of import duties.
Two Indian authorities officers confirmed the plans are continuing as meant, although they remained tight-lipped in regards to the particular merchandise slated for manufacture on the facility.
“Senior executives at Ford have had high-level discussions with the Tamil Nadu government recently where they reiterated their commitment to India,” confirmed one other supply, verifying that the plant would produce engines.
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The engine manufacturing initiative aligns with Ford’s international strategic route, in accordance to sources who spoke to the monetary day by day. The firm maintains its export operations from Sanand, the place it transferred nearly all of its manufacturing facility to Tata Motors two years in the past.
Sources point out that export-oriented initiatives are of their closing phases, with formal bulletins anticipated imminently, in accordance to a person acquainted with the developments.
Previously, Ford explored introducing electrical automobiles in India and studied the viability of merchandise together with the Endeavour, Everest and the Mustang. These initiatives seem to have been deprioritised in favour of the brand new export-centric strategy.
Following the closure of its Indian dealership community while sustaining service centres, business analysts counsel Ford’s operations are actually completely targeted on exports.
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