Ford Motor Co. halts Tamil Nadu plant sale to JSW Group, speculations rife about re-entry
Ford Motor Co. has scrapped plans to sell its Tamil Nadu plant to the Sajjan Jindal-led JSW Group, The Economic Times reported citing sources. This plant is Ford's only remaining factory in India, and the deal being called off has given rise to suspicions that the American auto giant may be considering starting afresh in the world's third-largest auto market.
"We continue to explore alternatives for our manufacturing facility in Chennai and have nothing further to share," the company said in an emailed response to the paper. It's been two years since Ford announced its withdrawal from India. Meanwhile, the other party in the deal – JSW Group has declined to respond to queries, as per the report.
JSW had initially agreed to acquire the Ford plant for approximately $100 million. This deal came on the heels of the conglomerate securing a 35 percent stake in a joint venture with SAIC. Ford's departure was announced amid significant losses and a slowdown in passenger vehicle sales in 2021 due to the COVID-19 pandemic, it added.
In January, Tata Motors acquired Ford's Sanand plant in Gujarat to bolster its electric vehicle production. The company's Maraimalai Nagar plant has been up for sale since Ford shut its India unit. Strategically positioned near Chennai port and spread across 350 acres, the Ford plant boasted an annual capacity of 150,000 cars and nearly 340,000 engines.
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