Ford has announced that it has submitted a Letter of Intent (LOI) to the Government of Tamil Nadu, confirming its intention to utilise the Chennai plant for manufacturing for export. Ford last produced cars at the plant two years ago and has been reviewing options for the plant.

The announcement follows a meeting between Ford execs and the heads of the state of Tamil Nadu.

This strategic move will see the facility repurposed to focus on manufacturing for export to global markets, as part of the company’s ambitious Ford+ growth plan.

“We are grateful for the ongoing support from the Tamil Nadu Government as we explored different options for the Chennai plant,” said Kay Hart, president, Ford International Markets Group. “This step aims to underscore our ongoing commitment to India as we intend to leverage the manufacturing expertise available in Tamil Nadu to serve new global markets.”

Further information about the type of manufacturing and other details will be disclosed in due course, Ford said.

Ford also said the announcement reaffirms its commitment to India as a critical market for the company's global operations.

Ford currently employs 12,000 people in Global Business Operations in Tamil Nadu, a number expected to grow by 2,500 to 3,000 jobs within the next three years with the Chennai plant restart.

Combined with the engine manufacturing operations in Sanand, India represents Ford’s second-largest salaried workforce worldwide, the company said.