Ford to invest Rs 3,250 crore to make new-gen engines

Core Insights - Ford is returning to India to manufacture engines at its Chennai plant, marking a strategic shift from its previous exit from the car market in 2021 [2][3] - The company has signed a memorandum of understanding with the Tamil Nadu government, emphasizing its commitment to leverage India's manufacturing capabilities as part of the Ford+ plan [2][3] Investment and Job Creation - Ford plans to invest ₹3,250 crore (approximately $393 million) in the new engine manufacturing project [2][3] - The project is expected to create over 600 direct jobs, along with additional indirect employment opportunities across the industry [2][3] Production Capacity and Timeline - The Chennai plant will have a planned capacity of 235,000 engines annually, with production anticipated to start in 2029 [2][3] - Specific details regarding the engine types and export markets will be disclosed closer to the production start date [2][3] Strategic Importance - The decision to manufacture in Chennai is seen as a vital component of Ford's manufacturing network, reinforcing the company's commitment to utilizing India's manufacturing expertise for future products [2][3] - Tamil Nadu's Industries Minister highlighted that Ford's return will invigorate the state's automotive sector [2][3] Current Operations - Ford currently employs approximately 12,000 people in its Global Business Operations in Tamil Nadu, indicating a significant existing presence in the region [2][3]