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US-based automobile giant Ford Motor Company has confirmed its decision to restart the production of vehicles in its Chennai plant after a two-year hiatus. 

According to reports, the company is planning to manufacture electric vehicles in the Chennai plant, which will be later exported to Southeast Asian nations. 

The factory located in Maramalai Nagar in Chennai was closed in August 2022. The opening of the plant is a part of the carmaker's "Ford+ Growth Plan" which is a part of the firm's broader strategy to tap the global markets. 

"We are announcing that we have submitted a letter of intent (LOI) to the Government of Tamil Nadu in India, outlining Ford's intention to utilise our Chennai plant for manufacturing for export," said Kay Hart, president of Ford's international markets group. 

MK Stalin's Crucial Visit

The move from Ford follows Tamil Nadu Chief Minister MK Stalin's recent visit to Ford's headquarters in Michigan. 

During the visit, Stalin and his delegates told Ford about the burgeoning ecosystem in Tamil Nadu for electric vehicle manufacturing, with companies like Vinfast and Tata JLR choosing the state for new plants. 

Business Standard reported that Ford's announcement "follows year-long efforts by the Tamil Nadu administration to find a buyer or alternative use for the factory." 

In the past couple of years, automakers including Ola Electric, Hyundai Motor India, and Tata Motors had expressed their interest in acquiring the plant. However, nothing panned out, and finally, Ford has decided to manufacture its vehicles from the Chennai plant for exporting purposes. 

Ford's Former Employees Confident

Meanwhile, it is still unclear whether former employees of Ford will be employed by the company after the opening of the plant. 

However, the employment provision will be dependent on the agreement signed by the employees with Ford India management at the time of signing the severance package agreement.