Tamil Nadu government wants Tata Motors to consider taking over Ford plant

Sources said the move is aimed at saving jobs of thousands of people within the Ford plant and outside, like the MSMEs that are dependent on the auto industry

The Tamil Nadu government is believed to be pushing home-grown Tata Motors to consider taking over the sprawling Maraimalai Nagar plant owned by Ford India, which has announced its plans to exit the country.

The state government, which wants to save the jobs of thousands of people within the Ford plant and outside, like the MSMEs that are dependent on the auto industry, is acting as an interlocutor between Tata Motors and Ford India, sources familiar with the matter told DH.

While Tata Motors, according to the sources, is keen on taking over the Sanand plant in Gujarat due to its proximity to its manufacturing unit, the Indian automobile major has not yet decided on the Maraimalai Nagar plant located just outside Chennai.

On Wednesday, a high-level delegation led by Tata Motors’ Managing Director Girish Wagh met Chief Minister MK Stalin at the Secretariat and held discussions on the company’s future plans in the state. The delegation was also closeted with officials from the Guidance Bureau during which several issues, including Ford's exit, came up for discussion.

Also Read — Tata Motors in talks with Ford to take over its two India plants

The sources said that Tata Motors is evaluating the possibility of taking over the plant and how it can be used. “The company is taking time to make a decision because they have to factor in a slew of issues. We have told them that we will provide every assistance in taking over the plant. They are exploring all options and the talks are continuing,” one of the sources said.

They also said a high-level delegation of Tata Motors has visited the sprawling facilities owned by Ford India in Maraimalai Nagar on the outskirts of Chennai and in Sanand in Gujarat, as part of the negotiations between the two firms.

DH had on November 27 reported that Tata Motors has touched base with the US-based auto giant for talks on the sale of its two plants in Tamil Nadu and Gujarat. Both the companies had then said they were not willing to comment on the issue.

Ford India had on September 9 announced its plans to exit India operations by closing its plants. However, the company will continue to cater to the Indian market through exports.

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