Will this make Trump angry? Ford’s pouring $370 mn into a Chennai plant it once abandoned

Ford Motor reportedly plans to invest $370 million to restart its shuttered factory in Tamil Nadu, India, signaling a dramatic return to a market it exited after losing over $2 billion.

According to a Bloomberg report, Ford will retool its Maraimalai Nagar plant near Chennai to manufacture over 200,000 high-end engines annually, primarily for export. The engines will reportedly not be sent to the US, though the final destinations remain unclear. An official announcement could come as early as this week.

The investment marks a significant policy shift for Ford CEO Jim Farley, who pulled the plug on Ford’s India operations in 2021, calling the country a low-return market. The decision came after a failed joint venture with Mahindra & Mahindra and mounting losses. Ford later sold its Sanand vehicle plant in Gujarat to Tata Motors.

Ford has declined to comment on the reported plans.

The move comes against the backdrop of heightened US-India trade tensions. President Donald Trump imposed a 50% tariff on Indian imports earlier this year and criticized India’s oil dealings with Russia. Still, US firms, including Apple Inc., continue expanding their footprint in India.

According to the report, Ford’s renewed interest aligns with broader shifts in global manufacturing. Tamil Nadu, already a hub for automakers like Hyundai, Renault, and BMW, offers strong industrial infrastructure. The revival of Ford’s facility would further anchor the state as a key player in automotive exports.

This pivot also suggests Ford is recalibrating its global strategy—stepping back slightly from its full-throttle electric vehicle focus to bolster engine production for international markets.

Despite past criticism from Trump over offshoring, Ford earned praise for recent domestic investments. Its return to India—if confirmed—may test political and market reactions as it bets again on a country it once deemed too costly to serve.