Ford, the American automaker, is reportedly considering returning to the Indian market with its manufacturing facility in Chennai back under review. However, the plans to regain its footing in the country have hit a roadblock, and Donald Trump might be the final blow, as per a source cited by the Economic Times.
Executives at the US automaker's Michigan headquarters are anticipated to convene soon to determine the future of the Tamil Nadu facility, which has been inactive since mid-2022. The company had earlier considered using the plant for engine manufacturing for export, but changing global preferences and increasing trade barriers have allegedly altered the considerations.
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The current options being considered include reviving operations or writing off the investment completely. The internal sentiment has transitioned from cautious optimism to worry.
In contrast, Ford is focusing more on Europe. The brand has already invested Rs 4.4 billion into its operations in Germany, initiated an electric vehicle project in Cologne, and is establishing component hubs and battery R&D centers in the UK, all part of a significant shift towards electric vehicles in more strategically important markets.
The brand has addressed the issue, stating, "Our position in relation to our Chennai manufacturing facility has not changed from late 2024." Furthermore, the Tamil Nadu government is reportedly urging Ford to clarify its intentions, keen to revitalize activity at the plant and enhance the state's automotive landscape.
It is essential to emphasize that the company's choice regarding its Chennai facility will not affect its Ford Business Solutions (FBS) division. This falls within the services sector, which is exempt from tariffs. Serving as a global center for technology, engineering, and business services, FBS has a workforce of approximately 12,000 employees in Chennai.