Not much time has passed since Ford Motors India decided to leave India. Ford India had many good products that did great in the country such as the Endeavour, Ecosport, Aspire. But due to a downfall in sales over the years, Ford had to take this tough decision. Ford has left India, but what about the manufacturing plants and the employees it has left behind? MG Motors India has shown interest in taking over the manufacturing plants of the company to strengthen its production.
MG Motor India has shown interest in obtaining the US auto major’s manufacturing facilities in Sanand (Gujarat) and Chennai. Ford Motor Company’s Sanand unit will stop working by the fourth quarter (Q4) of this year while the Chennai plants will wrap up operations by the second quarter of 2022.
Ford and MG Negotiations
The talks between MG, a British automaker owned by a Chinese firm, and Ford appear to be in the early stages. Neither of the two automakers has issued an official statement as of yet. Prior to COVID, MG had planned to enter a contract manufacturing agreement with Ford, but the arrangement fell through because of the pandemic. MG is now considering all possibilities, including contract manufacture and outright sale. Meanwhile, according to multiple media sources, Ford India is in talks with other original equipment manufacturers such as Mahindra & Mahindra and Ola. Under pressure from thousands of Ford employees to save their jobs, the Tamil Nadu government is willing to approve the agreement in terms of clearances.
Ford Motor’s Losses
Anurag Mehrotra, the head of Ford India, issued a statement a week ago, stating that despite the carmaker’s best efforts, it has been unable to identify a sustainable route ahead to long-term profitability. Ford said it had lost $2 billion in India over the last decade and was still unable to establish a suitable market for its vehicles. It made a similar announcement in May of this year, announcing that it was ceasing production in Brazil due to a $12 billion loss.
With Ford’s pullout from India, the American auto makers’ presence in the nation has all but vanished, as GM had already closed its doors.