Preliminary stage talks are on, Govt. Facilitating talks: Thennarsu
After inconclusive talks with the Tata group, the state industry minister said on Thursday, foreign automakers have shown interest to the Tamil Nadu government to acquire Ford Motor Company’s plant.
Ford announced plans to stop production in India in September, as it did not see a profit margin here. The carmaker expects to shut down operations at its vehicle and engine manufacturing facility in Tamil Nadu by 2022.
Tamil Nadu Industries Minister Thangam Thennarasu told Reuters: “Early-stage talks are underway.” “It is ultimately up to Ford as it will be a commercial arrangement. We are only facilitating negotiations between the companies,” he said. Mr. Thennarasu said the Tata group had also shown interest in buying the Ford plant, the state’s Met the chief minister and visited the plant for preliminary studies, but the state government had not heard from him about any deal so far.
“Now it is up to them to make an official announcement,” Mr Thennarasu told Reuters in an interview on Thursday. The company said in September that Ford India would shut down a second factory in Gujarat and vehicle and engine manufacturing at its Tamil Nadu plant by the fourth quarter of 2021.
‘25% capacity utilisation’
According to data intelligence company Global Data, Ford has the capacity to produce around 440,000 cars a year at both plants in India, but is using only 25%.
Asked which firms might be interested in buying the Tamil Nadu plant, Ford told Reuters in a statement: “We continue to explore potential options for our manufacturing facilities, but nothing more to share.” Is.”
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