American legacy automaker Ford is exploring the possibility of relaunching operations at its existing vehicle factory in India, Autocar India reported, citing sources familiar with the matter.
Ford contemplates to reopen its Chennai factory
According to the report, Ford International Markets Group President Kay Hart traveled to India to meet with relevant individuals about possibly reopening its Maraimalai Nagar factory in Chennai.
President Hart apparently told Tamil Nadu state officials last week about the American automaker’s plans for the said local factory. Ford had decided to keep the factory after planning to sell it earlier this year, hinting that the company was considering returning to the world’s third-largest auto market.
Ford India spokesperson reportedly confirmed President Hart’s visit.
“Senior leaders from Ford met and conveyed our sincere appreciation for the Tamil Nadu government’s invaluable support as the company undertakes a study to explore the future use of the Chennai manufacturing facility. We plan to create 2,500-3,000 additional jobs over the next three years at our headquarters.”
Unnamed Ford India spokesperson
Ford plans to localize EV platforms
While one source suggests that Ford is considering relaunching the Everest or Endeavour, the company apparently has bigger plans for electric vehicles.
Ford considers the prospect of localizing electric vehicle platforms in India to accommodate both the domestic and foreign markets with affordable models.
“In order for the company to justify reopening the factory, it needs to get into local production. While the likes of the Everest may be assembled and the Mustang Mach-E could be imported through the completely built route, the company is exploring the possibility of localizing electric vehicle platforms in India to not only cater to the domestic market but also ship vehicles overseas.”
Unnamed source
Ford’s efforts to deliver low-cost EVs
The news about Ford’s potential comeback in India comes after Chief Executive Jim Farley announced in a recent investor call that the automaker had formed a “Skunk Works” to help develop a low-cost EV platform.
“It was a small group, small team, some of the best EV engineers in the world, and it was separate from the Ford mothership.”
Ford Chief Executive Jim Farley
CEO Farley proudly shared that the team has successfully “developed a flexible platform that will not only deploy to several types of vehicles, there will be a large install base for software and services that we’re now seeing at” Ford Pro.
The company believes that Ford Pro software and services will offer a new revenue stream in addition to EV sales. Ford’s efforts to develop and produce affordable electric vehicle models are crucial for the company to stay competitive amid the intensifying race for low-cost offerings.
