**Ford Reconsidering Plans for Tamil Nadu Plant Amid Trump Tariffs**
*By Akash Pandey | Oct 11, 2025 | 02:27 PM*
US automotive giant Ford is re-evaluating its plans for the Maraimalai Nagar plant near Chennai, according to reports from The Economic Times. This reconsideration follows the introduction of tariffs by former President Donald Trump, which have compelled the company to reassess its financial strategy related to the facility.
### Facility Status
The Maraimalai Nagar plant has remained non-operational since mid-2022, after Ford halted vehicle production in India. Initially, the company had explored using the facility for engine production. However, Trump’s tariff policies have complicated investment plans for many American companies by making exports to the US more expensive, creating new challenges for Ford’s operations.
### Strategic Shift: Focus Moves from India to Europe
In response to the changing global economic climate and rising political challenges, Ford is shifting its strategic focus from India to Europe. The company has made significant investments in its European operations, including a €4.4 billion investment in Germany. This includes an electric vehicle project in Cologne, a parts manufacturing plant in the UK, and multiple electric vehicle launches supported by extensive battery research.
### Continued Commitment to Chennai Facility
Despite uncertainties about the Maraimalai Nagar plant’s future, Ford has reiterated its commitment to its Chennai manufacturing facility. A company spokesperson told The Economic Times, “Our position in relation to our Chennai manufacturing facility has not changed since we confirmed our intention to utilize the plant for manufacturing for export.” The spokesperson also highlighted that a 12,000-strong Ford Business Services team remains based in Chennai.
### Ongoing Discussions with Tamil Nadu Government
Ford continues to engage in regular talks with the Tamil Nadu government regarding the Maraimalai Nagar plant. The state government has been actively encouraging Ford to finalize its plans for the facility as part of its broader initiative to strengthen Tamil Nadu’s position as an auto manufacturing hub.
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As the situation develops, Ford’s decision-making on the Maraimalai Nagar plant will be closely watched by industry observers and local stakeholders alike.
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