American automaker Ford exited its Indian operations almost three years in the past, leaving each prospects and followers of the model in considerably of a lurch. Whereas speculations have been rife about Ford making a comeback into India over the previous 12 months or so, the American automaker has kept away from making an official announcement. Effectively, that’s till now.
Issues appear to have gotten transferring after Tamilnadu Chief Minster MK Stalin met senior Ford officers throughout his current US go to. Following this assembly, Ford has put out an official assertion about restarting the Maramalainagar manufacturing unit at Chennai.
Don’t get excited although
Ford’s plans to restart the Chennai manufacturing unit is aimed solely at exports for now. Home gross sales operations will proceed to stay suspended, and the automaker will solely run service and spares to assist present Ford homeowners in India.
In the meantime, right here’s official phrase from Kay Hart, the president of Ford’s Worldwide Operations. Right here’s what she posted on LinkedIn,
I’m happy to share that at the moment we’re saying that we have now submitted a Letter of Intent (LOI) to the Authorities of Tamil Nadu in India, outlining Ford’s intention to make the most of our Chennai plant for manufacturing for export.
The choice follows a number of conferences with the Tamil Nadu Authorities, together with one I had final week with the Honorable Chief Minister of the Authorities of Tamil Nadu as a part of his go to to the US. We respect their ongoing assist as we have now explored completely different choices for the plant.
This step underscores our ongoing dedication to India as we intend to leverage the manufacturing experience obtainable in Tamil Nadu to serve new world markets. I do know individuals might be curious, however we may have extra to share about the kind of manufacturing and which export markets we’ll be specializing in, together with different particulars, sooner or later.
For proper now, I’m excited that this determination will add to our rising worker base in Chennai; our world Ford Enterprise Options group based mostly there’s already greater than 12,000 sturdy and we’re planning to extend that by one other 2,500 to three,000 group members within the subsequent few years. If you add that with our engine manufacturing group in Sanand and our ongoing buyer and seller assist group, India is Ford’s second-largest worker base worldwide.
As this assertion reveals, Ford continues to operates its IT division in Chennai, which has a big workforce of 12,000 individuals. Ms. Hart has additionally outlined plans to broaden this operation by hiring 2,500-3,000 individuals within the subsequent few years. Ford continues to function an engine manufacturing facility at Sanand, Gujarat, once more geared solely for the export market. Whereas Ford did promote its automotive making manufacturing unit at Sanand to Tata Motors lately, it selected to retain the engine making facility. Whereas Ford had additionally put up the Chennai manufacturing unit on the market, the deal didn’t materialize.
Will Ford restart home gross sales in future?
It might, particularly given how giant the Indian market is and the way rather more headroom there’s to develop. A worldwide carmaker like Ford merely can’t ignore such a market, whose automotive penetration is only a fraction of that of western international locations. For now although, Ford’s specializing in exports, leveraging India’s strengths as a low cost-high high quality manufacturing hub. Given the Ford has operated in India for over 25 years, it does know the market fairly intimately. A revised technique for the Indian home market may be formulated at a future date. It’ll be unwise to jot down Ford off simply as but.
The put up It’s Official: Ford India To Restart Chennai Manufacturing facility first appeared on Cartoq.
