Ford Motor ceasing production in India leaves its workers high and dry

Company in talks with automakers to sell Chennai plant, says TN govt official

A few months from now Maraimalai Nagar, a sleepy satellite town located 45 kilometres from Chennai and home to the manufacturing facilities of Ford India and BMW India, will lose an important landmark — the Ford India factory.

A similar fate awaits the Ford factory in Sanand, 21 km from Ahmedabad. An uneasy calm surrounds the two units after the sudden announcement by the Michigan-based automaker on Thursday to discontinue vehicle manufacturing in India.

Amid the gloom and doom, the Tamil Nadu government has provided workers at the Chennai factory a glimmer of hope as it has said it is in talks with an automobile company to take over the unit.

“Talks are on between Ford and another automobile manufacturer and some other companies too. The state government will facilitate the smooth handover of the land, if they reach a deal,” N Muruganandam, principal secretary (industries), Tamil Nadu, told Business Standard.

Some of the potential suitors for the Ford units in both the states include Ola Electric, which has plans to get into the e-car segment, French automaker Citroen, and Arrival—a British-American electric vehicle maker that has been considering an India entry, said a person familiar with the plans.

Even earlier, Ford had held talks with other auto firms for a sale or contract manufacturing agreement.

“The Sanand plant, in particular, which is quite state-of-the-art and geographically well positioned for exports, could be a good buy for any new entrant,” said the person cited earlier. 

For its part, the Gujarat government too is closely observing the developments. “We are examining the issue in totality and will deal with all aspects appropriately. The state and central governments have supported Ford all through. The plant has been closed because of their internal reasons,” said Rajiv Kumar Gupta, ACS for industries and mines department of the state government.

For now, the fate of more than 5,000 workers employed at both the units hangs in the balance and they feel let down. 

“We were informed about the decision only yesterday after their public announcement. They informed us about this only through mail. The management has called for a meeting on Monday and we want to listen to what they have to say,” said Arun Sanjivi, a worker at the body shop of the factory and also the secretary of Chennai Ford Workers Union.

The announcement could not have been more ill-timed. The festive season kicked off on Friday with Ganesh Chaturthi.

Those employed at Sanand are anxious. Since the announcement, they have been trying to reach out to their bosses at Ford India. “All the phones are switched off. So, we will only have clarity on Monday when we resume work,” said an anxious contractual worker on the condition of anonymity.

From nearly 500 cars a day with 5,000 workers, production at Ford India’s Sanand plant gradually fell to only 200 cars a day with 2,500-3,000 workers. “Moreover, the plant was operational for only six days a month though our salaries were being paid in full,” the worker said. Of those workers only about 900 are part of the union.

The plan is to negotiate with the management on Monday to let go of all contractual workers and absorb all the 900-odd workers in the union into the powertrain shop, said a person who is part of the union. The powertrain might be operational for another couple of years to service Ford’s overseas plants, such as the ones in South Africa and Europe.