New Delhi: American automaker Ford Motor Company is in talks with the Sajjan Jindal-led conglomerate JSW Group as it looks to re-start operations at its Chennai facility to use it as a production base for export markets, two persons with direct knowledge of the matter told Mint.
An emailed query sent to JSW and Ford Motor Company did not elicit a response yet.
Ford Motor on Friday said it had signed a letter of intent (LoI) with the Tamil Nadu government to utilize and repurpose its Chennai manufacturing factory for export markets.
“Ford never stopped development and product work here (in India). Their factory has depreciated a lot. The consideration was whether they should sell it or use as a production base,” one of the persons told Mint on the condition of anonymity. “They might introduce some premium models like the Mustang in India… a full-fledged comeback is unlikely,” the person said.
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Last year, Ford and JSW’s deal to acquire the former’s manufacturing facility in Chennai fell through. Ford was also learnt to have been in talks with Mahindra about selling the plant then.
Now, the American automaker is holding discussions with JSW, which already has an automotive alliance with MG Motor India spanning various options.
“The discussions are very exploratory and premature right now to conclude which shape, if any, a potential alliance might take”, one of the sources cited above said.
Ford’s leadership had met Tamil Nadu chief minister MK Stalin in the US on Thursday.
“Further information about the type of manufacturing and other details will be disclosed in due course,” Ford said in a statement.
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“The announcement reaffirms Ford’s commitment to India as a critical market for the company’s global operations. Ford currently employs 12,000 individuals in Global Business Operations in Tamil Nadu, a number expected to grow by 2,500 to 3,000 jobs within the next three years. Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide,” the statement added.
