Ford puts plan to sell Chennai plant on hold
CHENNAI: Ford Motor India has decided to pause its plan of selling the Chennai plant, according to a report. The move comes after several high-level discussions with JSW Group.
The company is likely to decide against exiting India, one of the fastest growing auto markets, and now wants to maintain manufacturing presence in India, according to the report. They are still looking into several options for their Chennai manufacturing site.
Earlier, the US-based automaker had announced that it would exit manufacturing in India by selling its Chennai plant due to mounting losses in its passenger car business. In the last ten years, Ford has lost nearly $2 billion in operating profits. The 350 acre plant, which could produce 150,000 units and over 340,000 engines annually, has been closed since July 2022.
The company, hit by the COVID-19 pandemic-related downturn, was trying to sell its Chennai facility and was in talks with JSW and others. The company disclosed its decision to end production during the restructuring announcement in 2021. Ford chose to opt out of the government’s Production Linked Incentive Scheme in May 2022, despite being chosen for it.
The JSW Group had earlier stated it will buy a 35% share in a joint venture with SAIC, which operates MG Motors India, in order to acquire the Ford facility for a nearly $100 million deal. It was the JSW’s bet to diversify its business and enter into the lucrative electric vehicle business with the acquisition of the Chennai facility.