International Motor Companies Pack Bags From India
Ford Motor company joins the list of global vehicle makers that have announced to cease manufacturing units in the country
After global motor companies like General Motors (GM) and Harley-Davidson, Ford Motor also decided to end its operations in India due to accumulated losses.
The American motor company said that the losses have crossed $2 billion in the past 10 years.
Ford Restructures India Operations: To cease vehicle manufacturing in Chennai & Sanand; Progressively wind-down manufacturing of vehicles for export at Sanand plant by Q4 2021 & Chennai engine/vehicle assembly plants by Q2, 2022; To continue engine manufacturing for export. pic.twitter.com/E1PXmW7Rgq
— Ford India (@FordIndia) September 9, 2021
Ford started its motor manufacturing operations in India in 1991 and the closure of the units would result in the unemployment of nearly 4,000 employees.
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Meanwhile, Ford will continue to sell Completely Built-up Units (CBU) models and will also expand its business solution team in the country.
President and CEO of Ford Motor, Jim Farley, said that the company has accumulated huge losses over the last decade and the demand for new vehicles was much weaker.
Earlier, GM also closed its manufacturing unit in India in 2017 citing losses and decline in sales.
Additionally, American motorcycle manufacturer Harley Davidson also announced the closure of its production facility in Bawal and Haryana.
The decision by Ford has been made at a time when motor companies have already shown concerns over the decline in consumer demands, swelling fuel prices, and high taxes in India.
As per Indian Express, Ford had a share of 1.4 % in the Indian market, which is dominated by Japan’s Maruti Suzuki and South Korea’s Hyundai Motor, who together have more than 60 % share.
