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

Mergers and privatisation: The Finance Minister’s misguided banking agenda

By Thomas Franco   The Finance Minister has once again revived talk of merging two or three large public sector banks to make them globally competitive. Reports also suggest that the government is considering appointing Managing Directors in public sector banks from the private sector. Both moves would strike at the heart of India’s public banking system . Privatisation undermines the constitutional vision of social and economic justice, and such steps could lead to irreversible damage.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah  Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Political misfires in Bihar: Reasons behind the Opposition's self-inflicted defeat

By Vidya Bhushan Rawat*  The Bihar Vidhansabha Election 2025 verdict is out. I maintained deliberate silence about the growing tribe of “social media” experts and their opinions. Lately, these do not fascinate me. Anyone forming an opinion solely on the basis of these “experts” lives in a fool’s paradise. I do not watch them, nor do I follow them on Twitter. I stayed away partly because I was not certain of a MahaGathbandhan victory, even though I wanted it. But my personal preference is not the issue here. The parties disappointed.

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...

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...

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor*  This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

From fake interviewer to farmer’s advocate: Akshay Kumar’s surprising role in 'Jolly LLB 3'

By Prof. Hemantkumar Shah*  At the luxurious INOX theatre in Sky City Mall, Borivali East, Mumbai, around seventy upper-middle-class viewers attended the 10:45 a.m. screening of Jolly LLB 3. In the film’s concluding courtroom sequence, Arshad Warsi’s character asks the judge whether he would willingly surrender one of his own homes to the government for a development project in Delhi.

Only one Indian national park rated ‘good’ by IUCN: Concerns over ecological governance

By A Representative   Environmental policy expert Shankar Sharma has written to the Ministry of Environment, Forest and Climate Change (MoEF&CC) and its affiliated institutions, expressing grave concern over India’s deteriorating ecological health. Citing the International Union for Conservation of Nature (IUCN)’s latest global review, which found that only Khangchendzonga National Park received a “Good” rating among 107 national parks, Sharma warned that the findings reveal a “serious concern for the overall health of the country’s flora, fauna, and environment.”