Top executives from the Michigan-based company are expected to hold a meeting to discuss the future of the facility, one of the people said. “The Trump tariffs have prompted the company to reassess the financials underlying the original plan,” the person said.
The meeting could allow the automaker to decide whether to write down its investment in the country or start operations, another person said.
The Maraimalai Nagar plant has not been operational since mid-2022 after the company stopped manufacturing vehicles in India last year. ET reported in March that the company wanted to make engines at the factory. Since then, Trump’s tariff policies, which made exports to the US expensive, have derailed the investment plans of several American companies. As the global economic tide turns and political headwinds intensify, optimism has given way to concern, people with knowledge of the matter said. “India is no longer a priority market,” said a source familiar with the matter. Instead, Ford is setting its sights firmly on Europe.
In contrast to its operations in India, the company has made tens of billions in new investments on the European continent. This includes an injection of ₹4.4 billion into its German operations, a high-profile electric vehicle initiative in Cologne, a parts manufacturing center in Britain and the launch of multiple electric models, supported by intensive battery research and development. In response to ET’s queries, a Ford spokesperson said: “Our position regarding our Chennai manufacturing facility has not changed since late 2024, when we confirmed our intention to use the plant for export manufacturing. Further information on the type of production and other details will be announced in due course. The company also highlighted its 12,000-strong Ford Business Services team that continues to be based in Chennai. “We have have had regular discussions with representatives of the Government of Tamil Nadu and we appreciate their support,” the spokesperson added.
Ford Business Services provides software engineering, IT, finance, accounting and analytics services to the automaker’s global operations. But behind the official statements lies a more complicated picture. While insiders on one hand believe the company is waiting for time to make a final decision, on the other hand it is actively involved in the state government’s intention to revive operations after the closure of the plant in 2022. The state government on its part has urged the company to answer a question on how the company intended to use the plant as Tamil Nadu wants to retain its position as an auto manufacturing base double.
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