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Ford Motor Company has agreed to invest 3,250 crore to manufacture all-new, next-generation engines at its shuttered factory in Tamil Nadu, reviving protracted plans to renew its manufacturing operations in the facility after more than three years.The Maraimalai Nagar plant near Chennai is slated to start operations in 2029 with an annual capacity of 235,000 engines. This would create more than 600 direct jobs besides several indirect jobs. ET was the first to report on March 18 that Ford was looking to manufacture and export engines and related components from Chennai. ETtechComplements Sanand plant Later, on October 11, ET reported that top Ford executives were expected to meet Tamil Nadu government officials to discuss the future of the plant.Representatives from Ford met Tamil Nadu chief minister MK Stalin earlier in the day and confirmed the engine production plans, building on the letter of intent submitted by the company in September 2024.Live EventsFord pulled the plug on its Indian operations in September 2021 amid mounting losses and weak sales as well as a global restructuring. In 2022, the company sold its car manufacturing factory in Sanand, Gujarat, to Tata Motors though it retained an engine production facility in the area. Ford was also in talks with other automakers to sell the Chennai plant but later decided to shelve the plan.During its three-decade long stint in India since 1995, the company invested more than $2 billion and launched successful models including the EcoSport SUV and Figo small car.Ford said the latest manufacturing plans complement its existing engine manufacturing plant in Sanand, which produces and exports engines, ensuring India remains vital to the company’s operations in the region.“We are pleased to advance our plans and confirm the Chennai plant’s vital role in Ford’s manufacturing network,” said Jeff Marentic, president, International Markets Group at Ford, in a statement. “We are thankful to the government of Tamil Nadu for its continued support as we advance these plans. This decision reinforces our commitment to leveraging India's manufacturing prowess for future products.”Ford said details about the engine type and export markets will be shared closer to the start of production.Strong presenceDespite exiting its car manufacturing operations, Ford continued to have a strong presence in India through its Global Business Operations in Tamil Nadu where it currently employs about 12,000 people.Ford's investment in India comes at a time when US President Donald Trump has been pushing American and foreign companies to move production and jobs back into the country, publicly criticising those that are manufacturing overseas.“Ford’s decision to commence manufacturing in Chennai will further energise the resurgent automotive sector of Tamil Nadu," said Tamil Nadu industries minister TRB Rajaa. “This is not just the start of manufacturing at the existing Ford facility, it is the state taking yet another step towards the future of the automotive industry with the production of next-gen engines. We remain committed to supporting Ford's operations here.”Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onFord Motor CompanyTamil Nadu manufacturingChennai engine manufacturingFord investment IndiaMaraimalai Nagar plantTata MotorsfordUS manufacturing jobstata motors (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onFord Motor CompanyTamil Nadu manufacturingChennai engine manufacturingFord investment IndiaMaraimalai Nagar plantTata MotorsfordUS manufacturing jobstata motors(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
