India News Wire

Ford postpones selling its Chennai facility

<p>A report claims that Ford Motor India has chosen to postpone its intention to sell the Chennai facility. Following many high-level negotiations with JSW Group, the decision was made.</p>
<p><img decoding=”async” class=”alignnone wp-image-316760″ src=”×422.jpg” alt=” ford postpones selling its chennai facility 106134860 11zon 1″ width=”1198″ height=”674″ title=”Ford postpones selling its Chennai facility 3″ srcset=”×422.jpg 750w,×576.jpg 1024w,×432.jpg 768w,×220.jpg 390w,×84.jpg 150w, 1280w” sizes=”(max-width: 1198px) 100vw, 1198px” /></p>
<p>According to the article, the corporation is expected to opt against leaving India, one of the car markets with the quickest rate of growth, and instead wants to keep its manufacturing presence there. They continue to investigate a number of possibilities for their manufacturing facility in Chennai.</p>
<p>The US-based manufacturer had previously said that it will sell its Chennai facility to end production in India as a result of growing losses in its passenger vehicle division. Ford has lost about $2 billion in operational earnings over the last 10 years. Since July 2022, the 350-acre plant—which had the capacity to manufacture 150,000 units and more than 340,000 engines annually—has been decommissioned.</p>
<p>The business was attempting to sell its Chennai plant and was in discussions with JSW and other parties after being negatively impacted by the COVID-19 outbreak. When the business announced its reorganization in 2021, it revealed that it had decided to stop manufacturing. Despite being selected for the government’s Production Linked Incentive Scheme, Ford decided in May 2022 to withdraw from it.</p>
<p>Earlier, the JSW Group said that as part of a roughly $100 million transaction, it will purchase a 35% stake in a joint venture with SAIC, the company that runs MG Motors India. By acquiring the Chennai factory, JSW was attempting to expand its company and get into the profitable electric car industry.</p>

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