Ford to restart Chennai plant, to make all-new, next-generation engines

CHENNAI: Ford Motor Company, the American automobile major that played a key role in propelling Chennai’s rise as the ‘Detroit of South Asia’, has inked a deal with the Tamil Nadu government to restart its plant here to manufacture all-new, next-generation engines.

The company said it would invest Rs 3,250 crore to restart the plant, expected by 2029, which will have a planned capacity of 2,35,000 engines annually. The project is expected to create more than 600 jobs, plus indirect jobs across the industry, Ford said in a statement on Friday.

The memorandum of understanding that it has signed with the State government is built on the letter of intent that it inked in September 2024.

“We are pleased to advance our plans and confirm the Chennai plant’s vital role in Ford’s manufacturing network,” said Jeff Marentic, president, International Markets Group, Ford Motor Company. “We are thankful to the government of Tamil Nadu for its continued support as we advance these plans. This decision reinforces our commitment to leveraging India's manufacturing prowess for future products.”

According to the company, the engine lineup planned for production in Chennai would feature all-new technology. It added that details about the engine type and export markets would be shared closer to the start of production.

“Ford’s decision to commence manufacturing in Chennai will further energise the resurgent automotive sector of Tamil Nadu and speaks volumes about the State's robust manufacturing ecosystem, highly skilled workforce, and excellent investor facilitation under the leadership of Chief Minister MK Stalin," said Industries Minister TRB Rajaa.

“This is not just the start of manufacturing at the existing Ford facility, it is the State taking yet another step towards the future of the automotive industry with the production of next-gen engines. We remain committed to supporting Ford's operations here,” the minister added.

The Chennai plant that Ford opened way back in 1995 played a key role to help Chennai emerge as an automobile manufacturing hub. It led to investments and job creation by allied companies that made components for Ford.

More crucially, the presence of one of the biggest and most respected names in Chennai attracted attention among other auto majors, who followed Ford to invest in Chennai and other parts of Tamil Nadu.

The positive effect was felt by the Chennai Port, too, from where Ford vehicles were exported to several global markets.