Chennai, Sep 14 (IANS): Former Chief Minister and leader of AIADMK, O. Panneerselvam has appealed to Tamil Nadu Chief Minister, M.K. Stalin to intervene in the problem arising out of the car manufacturing company, Ford announcing to shut down its vehicle and engine assembling unit in Chennai.

In a statement on Tuesday, the former Chief Minister said that according to media reports, the shutting down of the Ford plant would adversely affect a large number of workers who are directly and indirectly employed by the carmaker. Several micro, small and medium enterprises that were dependent on the car manufacturer is also facing issues due to the shutting down of the Ford plant, O. Panneerselvam mentioned in the letter.

The former Chief Minister called upon Stalin to directly talk to the company management and the employees and try for continued operation of the plant. He also said that the government should ensure that employees don't lose their jobs.

It may be noted that the decision of the Ford company to exit from its Vehicle and Engine manufacturing plants in Chennai by the second quarter of 2022 will lead to direct job losses of around 2,600 workers and supervisors.

The Federation of Automobile Dealers Association (FADA) has said that the move of the Ford company would severely impact around 170 dealers of the company who had jointly invested around Rs 2,000 crore. About 40,000 people are employed in these 170 dealers, FADA has said in a statement.

FADA president Vinkesh Gulati in a statement said that the "Franchisee Protection Act" has to be rolled out by the Government of India immediately as this would ensure that the companies adequately compensate the franchisees before they shut down their operations. He said that while Ford had employed 4,000 people in its Sanand and Chennai plants, the dealers employed 40,000 people.

He also said that Ford had appointed multiple dealers as late as five months ago and that these dealers would be hit the hardest.