After a remarkable 20 years, Ford September 9 announced the shutting of its vehicle manufacturing in India. Ford is shutting two of its plants in Chennai and Sanand. The decision was mainly driven by the challenging market conditions and the enormous losses incurred by the company.
Over the last decade, Ford had amassed operating losses of over $2billion. In 2019, it had a $0.8 billion write-down of assets.
The manufacturing unit for exports of vehicles- Sanand, Gujarat plant is expected to shut down by the fourth quarter of 2021. The engine manufacturing unit- the Chennai plant, is expected to close down by the second quarter of 2022.
At the same time, Ford has announced that it would keep providing customers in India with service, warranty, and ongoing parts services. The company would import and sell iconic vehicles, including Mustang. Ford would stop selling current brands like Freestyle, EcoSport, Figo, Endeavour, and Aspire once the existing inventory is exhausted.
Experts say this would impact approximately 15,000 direct jobs at two factories and 300 retail stores, employing 1,500+ sales & service jobs.
This is the second-biggest exit of an automobile player from the Indian market. General Motors, which entered the Indian market a few years before Ford stopped selling cars in 2017.