Ford to end car manufacturing in India, cites financial losses as reason
New Delhi : Ford has announced that they will be shutting down their manufacturing units in India and will only rely on importing the cars; the company claimed a loss of more than USD 2 billion over the past 10 years in India. With this more than 4,000 employees will be affected.
"As part of our Ford+ plan, we are taking difficult but necessary actions to deliver a sustainably profitable business longer-term and allocate our capital to grow and create value in the right areas,” CEO Jim Farley said, adding that despite investing significantly in India, Ford has accumulated more than USD 2 billion of operating losses over the past 10 years and demand for new vehicles has been much weaker than forecast.
“I want to be clear that Ford will continue taking care of our valued customers in India, working closely with Ford India’s dealers, all of whom have supported the company for a long time. India remains strategically important for us and, thanks to our growing Ford Business Solutions team, will continue to be a large and important employee base for Ford globally,” Farley noted.
What will happen if you own a Ford car?
There is nothing to worry as the company has cleared that they will be shutting down their manufacturing units, but will continue to provide after sale service.
At present, Ford sells five models in India — Ford Figo, Ford Aspire, Ford Freestyle, Ford EcoSport and Ford Endeavour. The sale of all these five models will stop once the existing dealer inventories are sold.