Foreign automakers interested in acquiring Ford Motor Plant

Ford Motor expects to shut down operations at its Tamil Nadu plant in 2022

Chennai: After inconclusive talks with the Tata group, the state industry minister on Thursday said foreign automakers have shown interest to the Tamil Nadu government to take over the Ford Motor Company plant.
Ford announced plans to stop production in India in September, as it did not see a path to profitability there. The carmaker expects to shut down operations at its vehicle and engine manufacturing facility in Tamil Nadu by 2022.

Tamil Nadu Industries Minister Thangam Thennarasu told Reuters: “Early-stage talks are underway.”

“It is ultimately up to Ford as this will be a commercial arrangement. We are merely facilitating negotiations between the companies,” he said.

Thennarasu said the Tata group had also shown interest in buying the Ford plant, met the state chief minister and visited the plant for preliminary studies, but the state government had not yet heard from him about a deal.

“It is now up to him to make an official announcement,” Thennarasu told Reuters in an interview on Thursday.

The company said in September that Ford India would shut down vehicle and engine manufacturing at a second factory in the state of Gujarat and a Tamil Nadu plant by the fourth quarter of 2021.

According to data intelligence company Global Data, Ford has the capacity to produce around 440,000 cars a year at both plants in India, but is using only 25 percent.

Asked which firms might be interested in buying the Tamil Nadu plant, Ford told Reuters in a statement: “We continue to explore potential options for our manufacturing facilities, but nothing more to share.” Is.”

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