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Ford to announce the settlement packages for its factory employees, says T M Anbarasan, Rural Industries Minister of Tamil Nadu.
The US-based automaker has incurred losses close to USD 2 billion in the last ten years, and the company has decided to shut its manufacturing plants in India to stop further losses.
Since the company has announced its plans to stop production in India, its employees have been in fear of losing their livelihood.
However, the Tamil Nadu Rural Industries Minister, T M Anbarasan held a review meeting with more than fifty automotive parts suppliers from various regions of the state (some of them who also work with Ford India) to understand and analyze the situation.
After the meeting, the Tamil Nadu Rural Industries Minister, T M Anbarasan said that the state government will take all possible steps to protect the livelihood of the industry workers and check the feasibility of other automakers taking over Ford's facility in the state.
Also, the ministry made a note of the parts suppliers who will be largely affected by the shutting down of the production facility in the state. The minister also noted that the majority of automotive suppliers were not directly involved with Ford and they supply parts to other companies as well.
For those who are largely affected by the exit, their concern will be taken up to the Chief Minister of the State, M K Stalin.
Apart from this, the minister also added that the US automaker is also working on a settlement package for its factory employees in the state.
The minister also added that Ford's employees at the factory are receiving their salaries and have not been asked to resign or leave on an immediate basis.
"Even now the factory is producing cars, employees are being given salaries. We have enough time for (relief package). They have announced closure of the plant only in 2022," said T M Anbarasan, Rural Industries Minister of Tamil Nadu.
He further added that Ford's manufacturing plant in Chennai currently employs 2,638 workers directly, and 1,421 workers indirectly.
Ford's plan to shut down both its manufacturing plants in India comes as a shocker to many as the US automaker has a strong fan base in the country. Apart from that, some models of Ford in India were also doing good in the market with decent sales numbers on a month-on-month basis.
Though Ford is shutting down both its manufacturing plants in India, the US automaker will not be exiting the Indian market.
According to Ford, Ford will continue to sell its vehicles in India, and they are gearing up to bring CBU models like the Ford Mustang, Ford Mustang Mach-E and a few more.
Thoughts About Ford's Settlement Package For Its Factory Employees
Ford plans to shut its manufacturing plant in Chennai by the second quarter of 2022. Though this decision has been taken to protect the company from incurring further losses, the decision could negatively impact the lives of its employees.
To compensate for their losses, the US automaker is already working on feasible settlement packages for its employees, which is a welcome move.