Negotiations and diligent follow-ups helped bring back Ford to Tamil Nadu
The Hindu
Tamil Nadu government's persistent efforts lead to Ford's decision to restart manufacturing operations at its Chennai facility.
Ever since Ford announced its decision to cease operations at its plant near Chennai, the State government did not want to give up. Even though many other firms evinced interest to pick up the facility, negotiations were silently happening with Ford.
According to government sources, the government’s efforts to find use for the Ford facility in Maraimalai Nagar intensified in June 2023, when several potential auto investors expressed interest in acquiring the site for their operations.
Officials from the Tamil Nadu government were in touch with Ford team continuously. It is learnt that in July 2023, Industries Minister T.R.B. Rajaa during a visit to San Francisco, initiated talks with Ford USA on the future of the facility and the associated land. Ford requested six months to evaluate the situation and return with a decision.
In October-November 2023, several rounds of discussions were held between the Industries Department and Ford regarding possible ways forward, both online and in person in Chennai, but no decision was taken. In early 2024, there were reports that Ford was interested in restarting its operations at the facility. “We explained to them about the Electric Vehicle (EV) market that is booming in the State and about the greenfield projects such as VinFast, which is coming up at Thoothukudi,” said another official.
And now after the Chief Minister’s visit to the U.S., Ford has come out with the announcement to restart manufacturing at the facility for exports. Industries Minister T.R.B. Rajaa said: “This outcome was not an overnight decision but the result of year-long discussions, negotiations, and diligent follow-ups with Ford’s leadership in the U.S. and in India.”
“I visited U.S. twice last year to hold discussions. Bringing Ford back signifies a remarkable turnaround for Tamil Nadu’s industrial sector. It’s not just Ford, we have been working relentlessly to attract investment across multiple domains,” he said. “But seeing Ford return to Chennai gives another fresh boost to the already primed auto ecosystem in Tamil Nadu,” he added.
The return of Ford would also help the MSME ecosystem in the State. “With Ford’s re-entry, Tamil Nadu’s MSME ecosystem gets another shot in the arm. This will give an immediate boost to the local supply chain and offer fresh opportunities for these businesses to scale up with advanced manufacturing practices and more value-added jobs,” he pointed out.
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