Ford Shuts both its India plants, promises full support for existing cars sold here

Ford has pulled plugs on both their manufacturing units in India. This announcement came today through a official release sent out from the American car maker that was in the red for some time now. The good part here is that Ford has promised full support for all the exising Ford products sold here in India in terms of service and spares. Ford has also announced that they will not pull plugs on the brand here in India but will import car models as CBU which include the Ranger, Mustang, Territory and others. Ford entered India around 25 years ago in partnership with Mahindra then and had a market share of around 2% in the passenger car market.

The official statement said – Ford will continue to provide customers in India with ongoing parts, service, and warranty support. As part of the plan, Ford India will wind down vehicle assembly in Sanand by the fourth quarter of 2021 and vehicle and engine manufacturing in Chennai by the second quarter of 2022. Following 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 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. With more than 11,000 team members currently in India, Ford Business Solutions plans to expand to provide more opportunities for software developers, data scientists, R&D engineers, and finance and accounting professionals, in support of the Ford+ plan to transform and modernize Ford globally. Ford will continue full customer support operations for these vehicles with service, aftermarket parts and warranty coverage.

New photo by Motor World India / Google Photos

Anurag Mehrotra, president and managing director of Ford India, added: “Ford has a long and proud history in India. We are committed to taking care of our customers and working closely with employees, unions, dealers and suppliers to care for those affected by the restructuring. Despite these efforts, we have not been able to find a sustainable path forward to long-term profitability that includes in-country vehicle manufacturing. The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s car market.”

Fords becomes the latest manufacturer to exit India after General Motors, Harley Davidson and Fiat. The iconic car maker will continue to sell the current car models till dealer stocks remain they said. Ford had also tried to regain some ground lately announcing a tie up with Mahindra & Mahindra that failed . The company said the decision to cease production was made after considering several other options including partnerships, platform sharing, contract manufacturing and the possibility of selling its manufacturing plants, which is still under review.