Suspense continues over fate of Ford India`s Chennai plant
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Suspense continues over the fate of Ford India Private Ltd’s plant near here with speculation that the US auto company was having a rethink about its India operations.
Ford India was looking out for a buyer for its Chennai plant after it shut down Indian manufacturing operations here and in Gujarat.
Ford India had earlier sold its Gujarat plant to Tata Group.
Sources had told IANS that several people had visited the Chennai plant but nothing concrete had come out.
According to reports, talks with one of the interested parties -- JSW group-led by Sajjan Jindal -- have broken down.
In November this year, India’s $23 billion revenue JSW group and the $110 billion revenue automobile maker SAIC Motor, China entered into a strategic joint venture to transform and grow MG Motor in India.
According to the agreement, signed JSW will hold 35 per cent in the Indian joint venture operations. SAIC will continue supporting the joint venture with technology and products to deliver mobility solutions, the two groups said in a statement.
The media report also said Ford is having a rethink on exiting India and has made some new appointments.
A small Ford India’s team has been tasked to find a buyer for the Chennai plant, a senior official had told IANS earlier.
“No new appointment in Ford India has come to our notice,” the senior official told IANS preferring anonymity.
In September 2021, Ford India announced its decision to wind down vehicle assembly in Gujarat's Sanand vehicle and engine manufacturing in Chennai.
Ford India had set up four plants in the country -- vehicle and engine plants in Chennai and Sanand.
The company sold its Gujarat facility for Rs 725.70 crore to Tata Passenger Electric Mobility Ltd.
The plant in Sanand includes the entire land and buildings, the vehicle manufacturing plant, along with its machinery and equipment, and transfer of all eligible employees of Ford India's vehicle manufacturing operations.
Ford India is operating its powertrain manufacturing facility by leasing back the land and buildings of the powertrain manufacturing plant from Tata Passenger Electric.
It is said some of the former workers have been reengaged on contract basis by Ford India for maintenance of the Chennai plant.
