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

NEW DELHI: American automaker Ford is returning to India, but this time to manufacture engines and not cars. The company on Friday said it will invest Rs 3,250 crore to produce new generation engines at its Chennai plant.The automaker, which exited the Indian market in 2021, said it has signed a memorandum of understanding with the govt of Tamil Nadu, outlining its "strategic direction that leverages India's manufacturing expertise as part of the Ford+ plan".Following site preparation and investment in the project that will begin later this year, the Chennai plant will have a planned capacity of 2.35 lakh engines annually, with production expected in 2029, Ford said.

"With an initial expected investment of Rs 3,250 crore, the project is expected to create more than 600 jobs, plus indirect jobs across the industry," it added."We are pleased to advance our plans and confirm the Chennai plant's vital role in Ford's manufacturing network," Ford Motor company president, International Markets Group Jeff Marentic said.He further said, "This decision reinforces our commitment to leveraging India's manufacturing prowess for future products."

Ford said the engine lineup planned for production in Chennai will feature all-new technology. Specific details about the engine type and export markets will be shared closer to the start of production, it added.Tamil Nadu Industries Minister T R B Rajaa said Ford's decision to commence manufacturing in Chennai will further energise the resurgent automotive sector of the state.Besides this manufacturing presence, Ford said it currently employs approximately 12,000 people in its Global Business Operations in Tamil Nadu.