One of the first global carmakers to enter the Indian Market post the 1991 liberalization. Ford Motors Company is ending its manufacturing operations in India.
Ceasing its manufacturing operations in India, on 9th September 2021 the American automaker closed down its Sanand & Chennai plants. As the company has faced a huge cumulated loss of over 2 Billion Dollars in the last 10 years.
Ford Motor’s Company’s President and C.E.O, Jim Farley said that as part of their Ford+ plan, they are taking difficult. But measured actions to deliver a viable profit-making business that is long -term. And allot our capital to grow and create value in the right places.
Ford is working closely with employees, unions, distributors, government and other stakeholders in Chennai and Sanand. As this decision impacts 4000 employees and the company is working to develop and balance the roadmap. Resulting in diminishing the effects of the decision. Ford is set to pull down the manufacturing of vehicles for exports in Sanand & Gujarat by the final quarter of 2021. Vehicles and engine manufacturing in Chennai by the 2nd quarter of FY22, according to a statement.
The Ford Business Center and the product development center that works towards the global operation will keep up with the functions. However, the manufacturing will continue for the upcoming seven quarters, the company finds buyers for both its factories. After the decision to call off the transfer of operations to local rival M&M, Ford announced its decision to close India manufacturing operations.
Ford Service & Maintenance
Ford India will maintain warehouses in major metro cities like Delhi, Chennai, Mumbai, Kolkata, and Sanand. And will work jointly with its dealer network to re-align and help enable their move from sales and services to parts and service maintenance. Ford Motor India President and MD – Anurag Mehrotra expressed – despite efforts, they have not been able to find a durable path forward to long-term profitability. That includes domestic vehicle manufacturing.
Ford Motors is not the first global company to announce its departure from Indian soil. In the past, General Motors(GM) and American motorcycle company Harley-Davidson seized their operations too. Due to long-standing losses and negligible sales.