MG has reportedly expressed interest in acquiring Ford’s Gujarat and Tamil Nadu factories, but talks are still in the preliminary stages
As per a recent report, MG Motor India and Ford India are currently in talks regarding the latter’s Sanand and the Maraimalai Nagar factories. The discussions are reportedly in the early stages at the moment, so it isn’t certain if MG would end up acquiring the factories in question. Ford doesn’t have many options though, as both its plants are scheduled for closure soon.
Previously, MG was interested in Ford’s plants for contract manufacturing, but due to the pandemic, it had to drop its expansion plans. Now, contract manufacturing and outright sale of the factories, both options are on the table. Ford was in talks with a few other companies as well, including Ola Electric and Mahindra & Mahindra.
Currently, Ford is ramping down production rapidly in both its plants. The Sanand facility will shut down by the third quarter of the current fiscal year, while the Maraimalai Nagar facility will end all operations by the first quarter of the next financial year. The current production is only for pending international orders (export), with sales in the Indian market already ended.
Ford’s car lineup in the Indian market consisted of Figo, Aspire, Freestyle, EcoSport, and Endeavour. Due to their discontinuation, all Ford dealerships are offering massive discounts on the remaining vehicles in stock. However, Ford’s operations in the Indian market won’t end completely.
The manufacturer would continue to offer spare parts, services and warranties to its existing customers. The blue oval has also confirmed that it will focus on premium, iconic vehicles in India going forward. These will include the Ranger Raptor, Mustang, Mustang Mach-E, etc. These upcoming models will be brought to our market as CBU imports, so expect sky-high price tags on all.
Tamil Nadu government is willing to extend full support to buyers for Ford’s Maraimalai Nagar plant. The benefits on offer for buying out the plant would be the same as setting up a new factory, additionally with quick and easy approvals. The facility employs around 2,000 people, who will be a part of the package deal to the buyers of the plant.