The Chennai facility was crucial to Ford’s global export strategy, according to Kay Hart, president of Ford International Markets Group, who first emphasized the company’s strong commitment to its India objectives.
After announcing its comeback to India in September of last year, Ford Motor Company is now reevaluating its intentions and postponing its eagerly awaited January statement on its India strategy. According to sources who spoke to The Economic Times, the American carmaker is reconsidering its decision and won’t make it public until late summer.
The board of the corporation discussed the situation in January and decided not to make any statements at this time, according to a senior official with knowledge of the situation. The person told the Times of India, “There is definitely a delay, and the company is using the time to rethink its India strategy.”
According to ET, a Ford representative who was contacted reaffirmed the company’s dedication to leveraging its Chennai production facilities to service international markets. Moneycontrol was unable to confirm the report on its own.
According to individuals who spoke to the Times of India, there are several reasons for the delay. The changing political climate in the US is a major problem, as pressure mounts on manufacturers to favor American production. Ford’s India rebirth and other significant international investments may become less appealing as a result of this push for “Made in America” goods.
The state of Ford’s Chennai plant, which is situated near Maraimalainagar and needs major improvements, is another issue. The Economic Times estimates that the cost of retrofitting the facility to produce electric vehicles (EVs) may range from $100 million to $300 million, which would be a significant investment given the current uncertainty in the global EV market.
The Chennai facility was crucial to Ford’s global export strategy, according to Kay Hart, president of Ford International Markets Group, who first emphasized the company’s strong commitment to its India objectives. However, even the Tamil Nadu government had previously noted that Ford’s India plans were still fluid, the report adds.
