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NEW DELHI: Is Ford having a rethink on its India exit technique? The Amercian automotive firm has cancelled a possible take care of the JSW group for its Chennai plant, after holding very advanced-stage discussions, mentioned sources
While the corporate had additionally initiated talks with Mahindra & Mahindra beforehand and Taiwanese electrical maker Vinfast just lately on the market of the Chennai manufacturing facility, it could now wish to keep put and preserve a producing presence in India, sources advised TOI.
“The talks between Ford’s headquarters in the US and the JSW group have collapsed abruptly, after the companies had been moving towards closing the deal. This is a sudden decision and may stem from Ford’s desire to stay put in India from the manufacturing point of view. In fact, Ford has been looking to hire people in India once again in certain functions,” one of many supply mentioned. “However, nothing can be said with certainty on the matter as yet. Ford is still evaluating, and has not taken a final decision on coming back.”
Questions despatched to Ford late within the day didn’t get any response. JSW group responded with “no comments” to a questionnaire on the matter. Ford has been enjoying a seesaw so far as its India technique is worried.
Ford has been enjoying a seesaw so far as its India technique is worried. While it had introduced an exit from the market in 2021 after a poor run right here and having invested over $2 billion, it developed an curiosity out there in early 2022 because it utilized — and thereafter received — advantages beneath the Production-linked incentive (PLI) scheme for electrics.
However, it later ended up deciding on exit from a producing set-up in India, remaining with solely a token presence by way of sure imported, premium fashions. This had additionally seen the corporate promote its Sanand plant in Gujarat to Tata Motors, the acquisition of which was accomplished originally of this yr.
However, now with its plans to not promote the plant to JSW group — which has just lately entered the auto enterprise after its take care of China’s SAIC and MG Motor India — it appears to be having a re-think. “There has been activity at the Ford factory in Chennai, and recently there have been certain appointments in India as well,” one other supply mentioned.
While the corporate had additionally initiated talks with Mahindra & Mahindra beforehand and Taiwanese electrical maker Vinfast just lately on the market of the Chennai manufacturing facility, it could now wish to keep put and preserve a producing presence in India, sources advised TOI.
“The talks between Ford’s headquarters in the US and the JSW group have collapsed abruptly, after the companies had been moving towards closing the deal. This is a sudden decision and may stem from Ford’s desire to stay put in India from the manufacturing point of view. In fact, Ford has been looking to hire people in India once again in certain functions,” one of many supply mentioned. “However, nothing can be said with certainty on the matter as yet. Ford is still evaluating, and has not taken a final decision on coming back.”
Questions despatched to Ford late within the day didn’t get any response. JSW group responded with “no comments” to a questionnaire on the matter. Ford has been enjoying a seesaw so far as its India technique is worried.
Ford has been enjoying a seesaw so far as its India technique is worried. While it had introduced an exit from the market in 2021 after a poor run right here and having invested over $2 billion, it developed an curiosity out there in early 2022 because it utilized — and thereafter received — advantages beneath the Production-linked incentive (PLI) scheme for electrics.
However, it later ended up deciding on exit from a producing set-up in India, remaining with solely a token presence by way of sure imported, premium fashions. This had additionally seen the corporate promote its Sanand plant in Gujarat to Tata Motors, the acquisition of which was accomplished originally of this yr.
However, now with its plans to not promote the plant to JSW group — which has just lately entered the auto enterprise after its take care of China’s SAIC and MG Motor India — it appears to be having a re-think. “There has been activity at the Ford factory in Chennai, and recently there have been certain appointments in India as well,” one other supply mentioned.
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