Some foreign carmakers want to buy Ford’s Tamil Nadu plant: State government

After uncontested talks between Ford and the Tata group, the state industry minister said on Thursday that foreign automakers have shown interest in taking over Ford Motor Company’s plant in India’s Tamil Nadu state. Ford had announced plans to stop production in India in September, as it did not see a path to profitability here. The carmaker expects to shut down operations at its vehicle and engine manufacturing facility in Tamil Nadu by 2022.

Tamil Nadu Industries Minister Thangam Thennarasu told Reuters: “Preliminary stage talks are underway.” “It’s ultimately up to Ford because it will be a commercial arrangement. We’re just facilitating negotiations between companies,” he said.

Thennarasu said the Tata group had also shown interest in buying the Ford plant, met the state chief minister and visited the plant for preliminary studies, but the state government has yet to hear from him about any deal. “It is now up to him to make an official announcement,” Thenrasu told Reuters in an interview on Thursday. Ford India will shut down operations at its Sanand plant by the fourth quarter of 2021.

The company said in September that Ford India would shut down vehicle and engine manufacturing at a second factory in the state of Gujarat and a Tamil Nadu plant by the fourth quarter of 2021. According to data intelligence company Global Data, Ford has the capacity to produce around 440,000 cars a year at both the plants in India, but is producing only 25% of the cars. Asked which firms might be interested in buying the Tamil Nadu plant, Ford told Reuters in a statement: “We are continuing to explore potential options for our manufacturing facilities, but for the time being it would be better to share.” There isn’t much.”