Last week, Ford was said to be investigating contract manufacturing options in India. According to a new report, however, the automaker may close its operations in India completely.
Ford Looks To Wrap Up India Factory Operation!
It is said that Ford could shut down manufacturing operations at its factories in Chennai and Sanand, Gujarat. Besides contract manufacturing, Ford is also said to be keen on selling off its Indian factories.
According to rumors, Ford has been in talks with Ola, which could use Ford’s factory to manufacture electric vehicles.
Ola’s spokesperson declined to comment, while Ford India’s called it speculation: “We would not like to comment on speculation. We are currently assessing our capital allocations in India and expect to have an answer in the second half of this year”, Ford India’s spokesperson said.
Ford And Mahindra’s Joint Venture
Ford’s Chennai plant can produce 2 lakh cars and 3.50 lakh engines annually, while its Sanand plant is able to make 2.4 lakh cars and 2.7 lakh engines.
Ford and Mahindra failed to reach an agreement over a joint venture last year. It is said that Ford had initiated discussions with other manufacturers like MG, Changan, and Great Wall following this.
Ford and Mahindra originally planned to use Ford’s factories in India for production and to share platforms and technologies.
Ford went slow with their contract manufacturing discussions for two years because “talks were at an advanced level with Mahindra & Mahindra” and were looking at “cross badging and new product alliance plans with the Indian partner would take care of Ford India’s 400000 units per annum capacity at Maraimalainagar and Sanand,” said a source.
