CHENNAI: Even as multiple sources, including those in the government, are hopeful of getting Ford back in the State, not all are convinced that the efforts would bear fruit.
According to a consultant, too many swings have taken place globally, forcing auto companies to tinker and tweak their business plans from a strategic perspective. With European brands such as Skoda and Nissan struggling to boost their market share, it would be a “miracle” for Ford to re-enter the territory again, the person said. Among the causes for the US auto major to flounder in Indian market are its inability to understand the market and frequent changing of CEOs. “While one of the CEOs would be interested in India, another would not be. This flip-flop stance hit the brand reputation,” the person pointed out.
Another industry expert gave the move to get Ford back a 70:30 chance with the path to finalise the rethinking to take place within six to eight months. “Chances are bright and there could be financial support or tax waivers that the State may be willing to offer to bring back Ford,” the expert said, seeking to highlight the manufacturing benefits and the talent pool advantage of Chennai, which is aligned to the US process.
The person added that in all probability, Ford will operate as if it were a new company, taking guard afresh.