Ford pulled out of the agreement to sell JSW the Tamil Nadu factory

20 Dec 2023 , 10:11 AM

Following the completion of a deal with the Sajjan Jindal-led JSW Group, Ford Motor Co. abruptly withdrew its intentions to sell its Tamil Nadu facility, which is its last remaining industrial site in the nation, according to news reports. 

The move fueled rumors that the US business, which left the third-largest auto market in the world more than two years ago, may be thinking about returning. 

‘We continue to explore alternatives for our manufacturing facility in Chennai and have nothing further to share,’ a Ford India spokesman stated in an email to ET. 

Following Ford’s exit from India in September 2021 due to growing losses and the decline in the passenger vehicle market following the Covid-19 outbreak, the company’s Maraimalai Nagar facility has been put up for sale. JSW has finalized an agreement to purchase the Ford facility for approximately $100 million. 

JSW recently announced the purchase of a 35% stake in a joint venture with SAIC. However, one of the people with knowledge of the ongoing talks claimed that Ford ‘called off the deal and is no longer looking to sell the factory’ earlier this month. MG Motors India is owned by SAIC. 

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