[AMG Power]

Ford Motor Company has just announced that it has submitted a Letter of Intent to the Tamil Nadu Government, thereby confirming its intentions of restarting manufacturing operations in India. This comes after officials from Ford Motor Company had multiple meetings with the Tamil Nadu government to discuss feasibility plans of reviving its Chennai plant.

The plan, for now, is to manufacture for exports and the company hasn’t explicitly stated any production plans for domestic sales.

An India launch of the new Everest is being closely looked at as a fully imported vehicle, along with a made-in-India affordable EV platform at a later stage.

The Chief Minister of Tamil Nadu confirmed discussions to reopen the plant.



Source

[It's Magic]

Originally Posted by AMG Power

The plan, for now, is to manufacture for exports, and while the company hasn’t explicitly stated any production plans for domestic sales.

This makes sense. Restarting production for India specific cars will require significant effort and additional investments. They must have already calculated the feasibility of surviving in the Indian market before their previous exit.

Producing cars in India for export will save costs due to the exchange rate advantage.

[GTO]

Here's the full official statement:

Ford Prepares For Manufacturing in Chennai, India; Focus on Exports for Global Markets

CHENNAI, India, Sept. 13, 2024 – Ford today announced that it has submitted a Letter of Intent (LOI) to the Government of Tamil Nadu, confirming its intention to utilize the Chennai plant for manufacturing for export. The announcement follows a meeting between Ford leadership and the Honorable Chief Minister of the Government of Tamil Nadu as part of his visit to the United States.

This strategic move will see the facility repurposed to focus on manufacturing for export to global markets, as part of the company’s ambitious Ford+ growth plan.

“We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant,” said Kay Hart, president, Ford International Markets Group. “This step aims to underscore our ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets.”

Further information about the type of manufacturing and other details will be disclosed in due course.

The announcement reaffirms Ford’s commitment to India as a critical market for the company's global operations. Ford currently employs 12,000 individuals in Global Business Operations in Tamil Nadu, a number expected to grow by 2,500 to 3,000 jobs within the next three years. Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide.

Ford also continues to serve its one million customers in India with comprehensive customer support, including service, aftermarket parts, and warranty support.

[svsantosh]

Simple reason!

China is staring down a rabbit hole and it only makes sense to come (back?) to the next largest upcoming economy.

Ford (repeatedly) Exiting India and reentering is going to becoming a classic 'Kyunki...' B-School case study!

[omar]

It seems quite short sighted of such a big company to exit and then start production operations again.

No matter how they spin it, they simply don't sound trustworthy or decisive, as a firm.

[saikishor]

Originally Posted by omar

It seems quite short sighted of such a big company to exit and then start production operations again.

No matter how they spin it, they simply don't sound trustworthy or decisive, as a firm.

It would take a lot of faith and effort for someone to invest their hard earned money into this brand. The Americans simply do not know how to do business. Ford selling off their Sanand factory itself is a testament to my statement.

[funnysaltbrick]

I send my best wishes to Ford India's re-run in Indian land, albeit for export only (as of now). I hope that the deal they made with the government involves a roadmap of some, any, products that will be sold to India eventually. Otherwise, I just feel like this will be a massively wasted opportunity, in a way because it's like being the waiter to a party that you were supposed to organise.

I hope someone at Ford is reading this thread and seriously consider making for India again. I know that there aren't a lot of people who are foaming at their mouths to get a Ford but I do know a sizeable population of existing Ford owners looking for an upgrade. Make it happen, Ford.

[amtak]

First off, welcome back Ford! Even if it is only for exports. Secondly, I am keen to understand the products that they are planning to make here and export. They already have existing dealership network supporting their existing cars for service. If these cars are RHD cars, it may make good sense for Ford to test waters with a pilot project on how they are accepted in India.

I see no reason why Ford cannot succeed a 3rd time. Stellantis hasn't given up on the market yet and I see no reason, why Ford cannot succeed. They can happily sell 500-1000 cars in the domestic market and still grab the limelight.

[thanixravindran]

The key question is what markets they will export to. Automotive exports are still protected by tariffs across the world. India is not part of ASEAN as I guess their Thailand plant is used for ASEAN exports. They have good presence in Turkey and Europe as well. Unless there is any FTA, I don't see any potential for exporting vehicles.

They already have Sanand plant for engines supply in both domestic and export market, if needed. Are they planning to export auto parts? The official statement talks about Ford+ plan. So they may be thinking to leverage the growing EV ecosystem here in India given the tariff war between USA and China and it is very good optics to everyone to revive a manufacturing plant but completely repurposed.

[funnysaltbrick]

Originally Posted by thanixravindran

The key question is what markets they will export to. Automotive exports are still protected by tariffs across the world. India is not part of ASEAN as I guess their Thailand plant is used for ASEAN exports. They have good presence in Turkey and Europe as well. Unless there is any FTA, I don't see any potential for exporting vehicles.

They already have Sanand plant for engines supply in both domestic and export market, if needed. Are they planning to export auto parts? The official statement talks about Ford+ plan. So they may be thinking to leverage the growing EV ecosystem here in India given the tariff war between USA and China and it is very good optics to everyone to revive a manufacturing plant but completely repurposed.

I can only assume that they're looking to shut out their plant in either Genk/Cologne to make Chennai work. Considering how tight production is getting in Europe, I can only assume that they're looking at Chennai to take up that weight.

[sharmanova]

Source: Deccan Herald, September 14th issue.

[gopalnt]

I was a Ford fanboy, having had Endy and Ecosport. In fact, Ecosport was the longest serving car in my stable. Even now, couldn't find a car that drives as great as Ecosport. But I felt letdown by them just dropping everything one fine day and go, just like that.

Even if Ford is going to build cars for India, I am not going to go back to them. I am not willing to trust them anymore to put my money on them.

[hemant.kamat]

Originally Posted by gopalnt

I was a Ford fanboy, having had Endy and Ecosport. In fact, Ecosport was the longest serving car in my stable. Even now, couldn't find a car that drives as great as Ecosport. But I felt letdown by them just dropping everything one fine day and go, just like that.

Even if Ford is going to build cars for India, I am not going to go back to them. I am not willing to trust them anymore to put my money on them.

I echo the same sentiments. Despite bucking the herd mentality to follow my heart, and a near fuss free 5 years of ownership (Ford EcoSport : Official Review), Ford India's abrupt exit leaving Ford owners at the mercy of the dealerships for service (Kings Ford Goa cuts ABS sensor & harness wire | Reports as 'Rat Bite' | Ford India uncooperative) has resulted in me unable to repose my trust in this brand ever again

[shortbread]

Ford's journey in India reads like a dramatic screenplay, filled with soaring highs, gut-wrenching lows, and questionable-comical decisions.

After exiting the Mahindra joint venture (like any other Mahindra JV), Ford made a remarkable impact on it's own with the Ikon, a very successful model that established the brand as a household name. It remains baffling why they discontinued such a strong model instead of innovating it further. Despite the subsequent successes of the EcoSport and the well-regarded Endeavour, Ford faltered with a costly investment in the state-of-the-art Sanand manufacturing facility, only to sell it off cheaply to Tata Motors. Rather than focusing on more prudent expansions like the Maraimalai Nagar factory, Ford seemed to stray from strategic foresight.

After investing years and resources into building a reputation in the Indian market, their abrupt exit highlighted a remarkable miscalculation, only for them to reconsider their position years later and attempt a comeback now. To regain Indian consumers' trust, to regain that confidence, Ford must invest significantly, but success in the automobile industry often hinges on just one standout vehicle.

Ford needs to channel the spirit of the Ikon by launching an exceptional product that offers great value and specifications—it's time for Ford India to reignite its appeal and launch another Josh machine!

[buzzy_boy]

Wonder whether one could buy such cars in the loose - like how you could buy "export quality" tea by showing up at the factory in the Nilgiris in the good old days!