CHENNAI: With just six months left for Ford to close its plant in Maraimalai Nagar, it’s not yet clear whether the plant would be acquired by an Indian or foreign auto major. The company is working out a package for its workers.
Tata Motors was keen to acquire the Chennai plant and officials from the automobile major had twice visited the plant and held talks with State government at the highest level. Industries Minister Thangam Thenarasu, who acknowledged the talks with Tata Motors, said that discussions were also on with other automobile majors, including foreign ones. Sources claim there is be a possibility of the plant being taken over by some company in 2022.
Meanwhile, employees on condition of anonymity told Express that talks are on with workers’ union over settlement package. “Currently, the plant is shut and we hope the talks would restart in first week of January for finalising the package,” they said.
It is learnt that the employees feel operation in the plant could come to an end before the June 2022 deadline. “Domestic production had stopped after the announcement of shutting down of operations. Only exports were happening. That too may cease soon,” an employee said.
Meanwhile, micro, medium and small enterprises (MSMEs) across the State that supply materials and components to Ford have gone silent after the first meeting with State government officials. There were about 75 large enterprises from Tier-I regions and another 75 small businesses (approx) from Tier I and II cities that were supplying materials directly or indirectly to Ford. Around 8,000 employees were employed with these MSME. They were asked about the estimated business impact from the loss of order to Ford and job losses as well during the meeting held in September.
It was said then that an estimated turnover loss for some of the MSMEs in Tamil Nadu supplying to Ford is expected to be 20 per cent to 40 per cent. “Discussions are still ongoing over the issue,” an official said. MSMEs are now looking beyond Ford and working out new strategies. “Next year, the automobile sector could be in for a surprise,” sources said.