Ford India recently announced that it will restructure its India operations and the company will bring some of Ford’s iconic global vehicles and electrified SUVs to the country while ceasing vehicle manufacturing in India. The latest Ford India Shutdown news has come as a shock for the Indian customers of Ford as the company won’t be selling small cars anymore in the country. In this story, we have shared with you all you neew to know about the Ford India Shutdown.
Ford India Shutdown – All You Need To Know
Ford has announced that the company will restructure its business operations in the Indian market. As part of the plan, Ford India will wind down ots vehicle assembly plant in Sanand by the fourth quarter of 2021 and vehicle and engine manufacturing in Chennai by the second quarter of 2022. The company has taken this harsh decision as Ford Motor Company accumulated operating losses of more than $2 billion over the past 10 years and a $0.8 billion non-operating write-down of assets in 2019. The restructuring plan is expected to create a sustainably profitable business in India. As the company will closing down its manufacturing plants in the country, the sales of current locally-produced cars such as the Ford Figo, Aspire, Freestyle, EcoSport and Endeavour will cease once the existing dealer inventories are sold.
Here are the top five key highlights of the announcement made by Ford Motor Company:
- Ford plans to significantly expand its 11,000-employee Business Solutions team in India in coming years to support Ford globally; team to focus on engineering, technology, and business operations centres of excellence.
- Ford India will cease manufacturing vehicles for sale in India immediately; manufacturing of vehicles for export will wind down at Sanand vehicle assembly plant by Q4 2021, and Chennai engine and vehicle assembly plants by Q2 2022; Ford will work closely with employees, unions, dealers and suppliers to care for those directly impacted.
- Ford plans to serve customers in India with must-have, iconic vehicles, including Mustang coupe. Customers in India also will benefit longer term from the Company’s plan to invest more than US$30 billion globally to deliver all-new hybrid and fully electric vehicles, such as Mustang Mach-E.
- India will remain home to Ford’s second-largest salaried workforce globally; in addition to Ford Business Solutions, Ford India will continue engine manufacturing for export, as well as full customer support operations with service, aftermarket parts and warranty support.
- Ford India’s restructuring will advance the Ford+ plan for growth and value creation by strengthening automotive operations and capitalizing on unprecedented opportunities in electric and connected vehicles and enhanced customer experiences.
Further Read: Tata Punch Vs Hyundai Casper – Price, Specifications, Features and More Details About These Mini SUVs
Ford’s Existing Customers in India need to worry?
Ford says that the company will continue to offer full customer support operations for the existing vehicles plying on the Indian roads with service, aftermarket parts and warranty coverage. So, the customers need not worry about them. The company will now maintain parts depots in Delhi, Chennai, Mumbai, Sanand and Kolkata and will work closely with its dealer network to restructure and help facilitate their transition from sales and service to parts and service support.
Ford India said that it took the restructuring action after investigating several options, including partnerships, platform sharing, contract manufacturing with other OEMs, and the possibility of selling its manufacturing plants, which is still under consideration. The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s car market. What are your views on Ford’s sudden India Shutdown? Do you think the company should have invested more funds in India to get back on tract? Let us know in the comments section below.
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