Ford to stop manufacturing cars in India

GURUGRAM: Ford Motor Company, the US based multi-national automotive company announced on Wednesday that it’ll be ceasing all local production of cars in for sale in India will stop immediately, but manufacturing for export will cease down at the Sanand plant in Q4 2021, and the Chennai engine and vehicle plants by Q2 2022. Due to low demand of it’s passenger vehicles Ford decided to take up this step as it is not possible for them to manufacture more cars in India due to the losses incurred by them in last few years.

The company will continue it’s sale in India with CBU(completely build-up) models by importing them from it’s other manufacturing plants in different countries. “The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s car market,” said Anurag Mehrotra, managing director of Ford India. We have not been able to find a sustainable path forward to long-term profitability that includes in-country vehicle manufacturing.” he added.

Ford has promised to provide support to the car dealers to service it’s existing customer base in India. Ford has also said that 4000 workers would be affected after recent development, and it has ensured that it will work with employees, unions, and all stake holders to plan a fair settlement.

Jim Farley, Ford Motor Company’s president and CEO said via a press release “Despite investing significantly in India, Ford has accumulated more than $2 billion of operating losses over the past 10 years and demand for new vehicles has been much weaker than forecast.”

Ford has become the latest brand to cease production in India after many big companies such General Motors, Harley Davidson left Indian market after showing some promise when they first arrived in the Indian market. Ford faced severe competition from many brands such as KIA, Maruti suzuki, Hyundai, Nissan etc throughout years in mid segment and due to decreasing sales it decided to cease it’s car production in India due to the financial loss of $2 billion dollars in the last 10 years.

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