Ford to stop car production for sale in India immediately, to shut down both plants
New Delhi | Jagran Auto Desk: US car manufacturer, Ford Motor Co, will stop the production of cars for sale in India immediately and will shut down both its plants in the country, resulting in an uncertain future for about 4,800 employees - workers and staff. The company, in a statement, stated that it will sell only imported vehicles in the country as part of a restructuring exercise.
According to company sources, as quoted by Reuters, the decision was taken as Ford Motor Co is not making profits in India and in the interest of the company’s shareholders, the company has decided to shut down its operations in the country. The shutdown operation will take one year to complete.
"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 India said in a statement.
"Ford India will restructure its operations with plans to significantly expand its Chennai-based Ford Business Solutions team and bring to market some of Ford’s iconic global vehicles and electrified SUVs while ceasing vehicle manufacturing in India", the statement added.
The company, which invested about USD 2.5 billion at its Chennai (Tamil Nadu) and Sanand (Gujarat) plants, will stop selling vehicles such as the EcoSport, Figo and Aspire which are produced from these plants. Going ahead, it would only sell imported vehicles like Mustang in the country.
Ford India's Chennai plant has about 2,700 associates (permanent workers) and about 600 staff while in Sanand, the number of workers will be about 1,500. The union official said Ford India will continue with engine manufacturing at Sanand for exports.
In January this year, Ford Motor Co and Mahindra & Mahindra had decided to scrap their previously announced automotive joint venture and instead chose to continue independent operations in India.
In October 2019, the two companies had announced an agreement under which Mahindra & Mahindra would acquire a majority stake in a wholly-owned arm of Ford Motor Co (FMC) that will take over the automotive business of the US auto major in India.
(With Agencies Inputs)
Posted By: Talibuddin Khan