MG Motor India Interested In Acquiring Ford's Manufacturing Plants: Report


- MG Motor has shown interest in acquiring Ford's India plants
- Ford India will cease local vehicle manufacturing in Q4 2021
- Ford will continue to offer parts and after-sales support to customers
MG Motor India has reportedly expressed interest in acquiring Ford's Sanand and Chennai plants after the American automaker announced its decision to cease local vehicle manufacturing. According to a report from ETAuto, the talks between the two automotive brands are in very early stages. The manufacturing of vehicles for export will wind down at the Sanand plant by Q4, 2021, while operations at the Chennai plants will halt by Q2, 2022. We have reached out to both the carmakers for an official statement. However, at the time of publishing this story, our emails remained unanswered.
Also Read: Ford Wakes Up Badly Burnt From Its India Dream

Ford will continue to make engines and vehicles for the export market at its Chennai plant till the second quarter of 2022
In the press statement, the carmaker said it took the restructuring steps after considering several options, including partnerships, platform sharing, contract manufacturing with other OEMs, and the possibility of selling its manufacturing plants, which is still under consideration. Do note, Ford India has been in talks with other OEMs, including Mahindra & Mahindra and Ola Electric.
The Chinese-owned British carmaker had previously approached Ford for contract manufacturing, however, the expansion plans were dropped due to the restrictions imposed by the COVID-19 pandemic. MG is reportedly now looking at all options including contract manufacturing as well as an outright sale. The Tamil Nadu state government will provide all the necessary support to the process in terms of approvals, and the asset may attract fiscal benefits.

All made-in-India models like the Ford Figo, Freestyle, Aspire, EcoSport and Endeavour will be discontinued
Also Read: Ford's India Exit: How It Affects Existing Customers
As part of its major restructuring programme, Ford will no longer make cars in India and will focus on expanding the Ford Business Solutions team. All made-in-India cars like the Figo, Freestyle, Aspire, EcoSport and Endeavour will be discontinued. Sales of these current products will cease once existing dealer inventories are sold out. However, Ford will continue to offer after-sales support for these vehicles like - service, aftermarket parts and warranty coverage.
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