Skip to main content

Modi-hyped auto hub loses Ford in Gujarat; read about a 'parallel' in US off Boston

 
By Rajiv Shah 
Currently "holidaying" in Somerville, five km from Boston, one of the most high profile cities of the United States, the other day I decided to take a stroll up and down the busy hillock where I stay. Just next to the main road, a two minutes walk, crossing the road and reaching in a small open space, I found a few round shaped boards in yellow. All of them described about what Somerville was and is -- of course in a nutshell.
One of the boards particularly attracted me -- and as a journalist who was based in Gandhinagar, the Gujarat capital, I could connect with it directly. The round yellow board talked of how Ford, one of the largest car manufacturers, had an assembly line at Somerville's Assembly Square, just two miles away from where I live.
Titled "Assembling Cars at Assembly Square", this is what is written on the tin board, "One result of the boom times after World War II: for the first time, many American families had the cash to own a car. Ford Motor Company responded by converting a plant that had produced 20,000 army universal carriers during the war into a huge new auto factory."
It continues: "In 1948 alone, the plant transformed 500,000 tons of iron into 75,000 cars -- enough to stretch bumper-to-bumper from Somerville to Miami. In 1957, after turning out 400 of the famously unpopular Ford Edsels, the plant closed for good."
Modi with Hinnrichs
The reason why this interested me is, in 2011, when I was still in Gandhinagar, Narendra Modi, as Gujarat chief minister, had ensured, in his effort of one up-manship, that Ford set up a plant in Gujarat. Part of his effort to prove it to one and all that it is he who has made Gujarat No 1 business destination in India, Modi shook hands with Joe Hinrichs, Ford Asia Pacific and Africa President. An MoU was signed.
It was declared that, following Tata Motors, which shifted its Nano plant from Nandigram I  West Bengal on being offered a hefty concession, the US MNC Ford Motors would set up a car manufacturing unit at Sanand at a cost of about Rs.4,000 crore on 460 acres land -- the second in the country after its Chennai plant, with the capacity to roll out 2.40 lakh cars and 2.70 lakh engines annually, creating about 5,000 jobs.
US Secretary of State Kerry at Ford plant
Addressing media, Hinrichs said, the first vehicle and engine were expected to come off the assembly line in early 2014, praising "the pro-business environment, the available infrastructure facilities, and access to ports" in Gujarat. True to his known ways of creating a hype, Modi tweeted: "Gujarat is proud to host the biggest facility of Ford outside America worth $1 billion which will provide a total of 36,000 jobs."
Even before the new Ford factory became fully functional, it attracted so much of attention that US Secretary of State John Kerry, during his high-profile visit for attending the Vibrant Gujarat business meet, went all the way to Sanand to address workers at the plant on January 12, 2015. However, the Modi-Ford bonhomie lasted for just about a decade when Ford declared it would close its operations in Gujarat.
Last car being rolled out of Ford's Sanand plant
The Sanand plant of Ford is all set to finally shut the shop within a few days from now. The giant MNC announced early last year its decision to stop car production by December-end, with the engine plant continuing to operate for three more months in order to "fulfil" all the order commitments before winding up the plant operations completely.
Different reports estimated, Ford had invested anywhere between Rs 4,000 to 6,000 crore at its Sanand plant, but its accumulated operating losses of around US$ 2 billion in India in about a decade. The decision to shut down the shop rendered jobless about 3,000 workers -- 2,000 of them permanent -- in sharp contrast to the Modi tweet which claimed the unit would employ 36,000 workers.
Ford's Somerville plant
In September 2021, the last car rolled out of the Ford manufacturing unit, which produced three models -- Figo, Aspire and Freestyle. These cars were created to challenge the dominance of Maruti Swift and Dzire, but failed to put up a fight to Maruti in sales. Ford became the second automobile giant to leave Gujarat -- first one was General Motors, which closed down its unit near Vadodara, in Halol, in 2017. 
The shutdown has come after Tata Motors stopping the production of the much hyped Nano -- dubbed as the world's cheapest car. The cause first major confrontation between Modi and West Bengal chief minister Mamata Banerjee (Ratan Tata on being handed over land in Sanand in 2008 called Modi "good M", and Mamata "bad M"), the car, attracted fewer and fewer buyers every year, and in a decade stopped producing in altogether in 2019.
Workers outside Ford's Somerville plant
It may not be a very good parallel, but a dig into the history of Ford in Somerville, too, revealed a somewhat similar pattern as its counterpart in Gujarat. It's a different matter that in the US I have found that it is considered absolutely normal for a business to wind up. In fact, it is considered a capitalist's right to wind up a unit -- a pattern now sought to be followed in India, too, without earlier pretensions.
The Assembly Square in Somerville is named for the 52-acre Ford assembly plant that used to operate in the area. The factory closed in 1958, but the name still sticks, as the vicinity transformed into a new “Assembly Row” of corporate offices, shopping complex, apartments, and a bus-cum-metro station — all of which came up in 2010s.
Last car being rolled out of Somerville plant
More than 1,100 workers lost their jobs when the factory closed in 1958. The Somerville plant produced multiple models, including the Ford Edsel and popular Fairlane. An original Edsel cost $2,878 in 1958, said a Boston source. Ford abandoned production of the car in 1960 and "swallowed" a $350 million loss. It was referred to as “one of the biggest flops in automotive history.”
Quite like in Sanand, in Somerville too a photograph of the last car rolled off the assembly line at the Ford plant was released -- wherein plant manager EJ Duquette in shaking hands with the driver who took the vehicle, a station wagon, off the line. A Boston site says, the event was "a big sendoff as workers moved on. Some went to other Ford plants in Ohio and New Jersey, the older workers retired on pension, and others tried to find new jobs."

Comments

TRENDING

Budget for 2018-19: Ahmedabad authorities "regularly" under-spend allocation

By Mahender Jethmalani* The Ahmedabad Municipal Corporation’s (AMC's) General Body (Municipal Board) recently passed the AMC’s annual budget estimates of Rs 6,990 crore for 2018-19. AMC’s revenue expenditure for the next financial year is Rs 3,500 crore and development budget (capital budget) is Rs 3,490 crore.

History, culture and literature of Fatehpur, UP, from where Maulana Hasrat Mohani hailed

By Vidya Bhushan Rawat*  Maulana Hasrat Mohani was a member of the Constituent Assembly and an extremely important leader of our freedom movement. Born in Unnao district of Uttar Pradesh, Hasrat Mohani's relationship with nearby district of Fatehpur is interesting and not explored much by biographers and historians. Dr Mohammad Ismail Azad Fatehpuri has written a book on Maulana Hasrat Mohani and Fatehpur. The book is in Urdu.  He has just come out with another important book, 'Hindi kee Pratham Rachna: Chandayan' authored by Mulla Daud Dalmai.' During my recent visit to Fatehpur town, I had an opportunity to meet Dr Mohammad Ismail Azad Fatehpuri and recorded a conversation with him on issues of history, culture and literature of Fatehpur. Sharing this conversation here with you. Kindly click this link. --- *Human rights defender. Facebook https://www.facebook.com/vbrawat , X @freetohumanity, Skype @vbrawat

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

Licy Bharucha’s pilgrimage into the lives of India’s freedom fighters

By Moin Qazi* Book Review: “Oral History of Indian Freedom Movement”, by Dr Licy Bharucha; Pp240; Rs 300; Published by National Museum of Indian Freedom Movement The Congress has won political freedom, but it has yet to win economic freedom, social and moral freedom. These freedoms are harder than the political, if only because they are constructive, less exciting and not spectacular. — Mahatma Gandhi The opening quote of the book by Mahatma Gandhi sums up the true objective of India’s freedom struggle. It also in essence speaks for the multitudes of brave and courageous individuals who aspired to get themselves jailed for the cause of the country’s freedom. A jail term was a strong testimony and credential of patriotism for them. The book has been written by Dr Licy Bharucha, an academically trained political scientist and a scholar of peace studies and Gandhian studies, who was closely associated throughout her life with those who made the struggle for India’s independence the primar...

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

UP tribal woman human rights defender Sokalo released on bail

By  A  Representative After almost five months in jail, Adivasi human rights defender and forest worker Sokalo Gond has been finally released on bail.Despite being granted bail on October 4, technical and procedural issues kept Sokalo behind bars until November 1. The Citizens for Justice and Peace (CJP) and the All India Union of Forest Working People (AIUFWP), which are backing Sokalo, called it a "major victory." Sokalo's release follows the earlier releases of Kismatiya and Sukhdev Gond in September. "All three forest workers and human rights defenders were illegally incarcerated under false charges, in what is the State's way of punishing those who are active in their fight for the proper implementation of the Forest Rights Act (2006)", said a CJP statement.

Uttarakhand tunnel disaster: 'Question mark' on rescue plan, appraisal, construction

By Bhim Singh Rawat*  As many as 40 workers were trapped inside Barkot-Silkyara tunnel in Uttarkashi after a portion of the 4.5 km long, supposedly completed portion of the tunnel, collapsed early morning on Sunday, Nov 12, 2023. The incident has once again raised several questions over negligence in planning, appraisal and construction, absence of emergency rescue plan, violations of labour laws and environmental norms resulting in this avoidable accident.

Sardar Patel was on Nathuram Godse's hit list: Noted Marathi writer Sadanand More

Sadanand More (right) By  A  Representative In a surprise revelation, well-known Gujarati journalist Hari Desai has claimed that Nathuram Godse did not just kill Mahatma Gandhi, but also intended to kill Sardar Vallabhbhai Patel. Citing a voluminous book authored by Sadanand More, “Lokmanya to Mahatma”, Volume II, translated from Marathi into English last year, Desai says, nowadays, there is a lot of talk about conspiracy to kill Gandhi, Netaji Subhas Chandra Bose, and Shyama Prasad Mukherjee, but little is known about how the Sardar was also targeted.