The whole Indian market was in shock when Ford announced that it will be exiting from the Indian market. The automaker is winding up its operations slowly and will stop manufacturing cars in India. So, it is on the lookout for a buyer for its Chennai and Sanand factories and MG might be interested in Ford India factories.
MG Acquiring Ford India Factories
According to some sources, Morris Garages is doing meeting rounds with Ford regarding the take over of both the factories. The automaker seems interested in buying Ford’s factories for its operations or might start manufacturing too in the future.
MG and Ford’s Cancelled Contract Manufacturing Deal
Previously, when Ford and MG tried to initiate a contract manufacturing deal when Ford’s factories were not utilizing the production capacity. But now, directly the outright sale offer is there, so let’s see if MG acquires it or not.
Why Ford is Closing Down its Indian Operations?
Ford has started to close down its operations in India. Lack of growth in this difficult market and huge accumulating losses are the stated reasons by the automaker. Its Chennai plant will close down vehicle manufacturing and engineering by 2022 and Sanand (Gujarat) plant by 2021’s fourth quarter itself. However, the automaker will still be operating in India but only via CBU imports.