Ford India denies talks with Taiwan's Foxconn for selling Chennai unit

Automobile firm is finalising a severance package with 2,000 employees working at the factory

Ford India said on Thursday it is not in talks with Taiwan’s Hon Hai Technology Group (Foxconn) for handing over its factory in Chennai’s Maraimalai Nagar.

Reports said Foxconn plans to set up an electric vehicle (EV) manufacturing unit in India and it is considering Tamil Nadu for the investment. “We deny having a meeting with Foxconn and would refrain from commenting on the rumours any further,” Ford India said in a statement on Thursday.

Ford India is finalising a severance package with around 2,000 employees working at the Maraimalai Nagar unit. According to the company, around 50 per cent employees have agreed to stay back at the unit as they discuss their severance packages.

“Pursuant to the employee cascade on June 9, the Company received a positive response, with a vast number of employees consenting to support production in parallel to discussions on the severance package on offer. Therefore, the Company has decided to extend production till end-July 2022,” said a Ford India official. The company added that those continuing with a strike would have to face a ‘loss of pay’ with effect from June 14.  

Foxconn’s plan once was to set up an EV manufacturing unit in India through its subsidiary Foxtron, as per reports. Its subsidiary, Bharat FIH, currently has two manufacturing units in Tamil Nadu's Sriperumbudur that manufactures phones like Apple iPhones and Xiaomi phones. Bharat FIH is also into component manufacturing for electric vehicles, supplying to companies like Ola Electric and Ather.

Young Liu, chairman of Foxconn, met with Prime Minister Narendra Modi on Thursday in Delhi. "Glad to meet Mr. Young Liu, Chairman, Foxconn. I welcome their plans for expanding electronics manufacturing capacity in India, including in semiconductors. Our push for EV manufacturing is in line with our commitment of Net Zero Emission,” said Modi on Twitter.