Ford India has announced that the company will restructure its operation plans in the country. Ford will stop its manufacturing activities in India with immediate effect. While the Sanand assembly plant will be closed by Q4, 2021, the Chennai based facility will stop operations by Q2, 2022.
Ford has confirmed that it will continue to remain in the market. It plans to introduce some of its iconic global vehicles and electrified SUVs as CBUs in our market. Ford will continue to provide customers in India with ongoing parts, service, and warranty support. The company will stop selling the existing models including the Freestyle, Figo, Aspire, EcoSport and the Endeavour once the existing dealer inventories are cleared.
Ford 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 company believes that the restructuring is expected to create a sustainably profitable business in India. Ford will focus on growing its Ford Business Solutions capabilities and team in the country, as well as engineering and engine manufacturing for export. Ford will begin importing and selling must-have, iconic vehicles, including Mustang Coupe.
“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,” said Jim Farley, Ford Motor Company’s president and CEO.
Ford India said that these decisions are taken 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. Approximately 4,000 employees are expected to be affected by the restructuring. Ford India will 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 will maintain a smaller network of suppliers to support engine manufacturing for exports and will work closely with other suppliers to ensure a smooth wind-down of vehicle manufacturing. Ford also will continue to rely on India-based suppliers for parts for its global products, and suppliers and vendors supporting Ford Business Solutions will continue to support the business as normal.
