Ford Motor Company has officially announced to cease production of cars at its manufacturing facilities in Gujarat and Tamil Nadu. The company is in talks with other brands to sell these production plans. A new media report claims that MG Motor India is interested in the Ford India assets.
In fact, MG Motor India has initiated talks with the American auto maker. The company is interested in both the Sanand and the Maraimalai Nagar factories. Ford has decided to exit from manufacturing cars in India.
The report claims that the talks are in very early stages. MG Motor India’s president & CEO Rajeev Chaba has refused to comment on the matter. MG was earlier talking with the Ford Motor Company for contract manufacturing; however, the restrictions due to COVID-19 pandemic MG had to put off its plans.
Things have improved significantly, and MG is looking at all the options including contract manufacturing as well outright sale. The Tamil Nadu Government has also announced to offer full support to the process in terms of approvals and the asset may attract fiscal benefits as well has made the asset more attractive.
We reported earlier that Ford India is talking with multiple companies including electric two-wheeler maker OLA. While the Sanand assembly plant of Ford will be closed by Q4, 2021, the Chennai based facility will stop operations by Q2, 2022. Ford has confirmed that it will continue to remain in the market. It plans to introduce some of its iconic global vehicles and electrified SUVs as CBUs in our market. Ford will continue to provide customers in India with ongoing parts, service, and warranty support.
