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Ford To End Car Manufacturing In India

Ford India has decided to end the car manufacturing in India due to the mounting losses. The carmaker is suffering from huge losses crossing $2 billion (14,700 crore) due to low sales in the market over the past 10 years.

According to the official release, Ford India will immediately cease the manufacturing of cars for India. Production of export vehicles will be stopped by the fourth quarter of 2021 at Sanand factory in Gujarat and by second quarter at Chennai engine and vehicle assembly plant.

Ford said that before deciding to cease its Indian manufacturing operations, it looked at several options including partnerships, contract manufacturing with other OEMs, platform sharing and also the possibility of selling its factories, which is still under consideration.

Approximately 4,000 employees are expected to be affected by the restructuring. But, Ford India assures that it will work with all those concerned “in Chennai and Sanand to develop a fair and balanced plan to mitigate the effects of the decision.”

President and CEO of Ford Motor Company, Jim Farley has stated that the decision has been taken as part of the company’s Ford+ plan, which would deliver a sustainably profitable business in the long run.

The company says more than 500 employees at the Sanand engine plant and about 100 workers supporting parts distribution and customer service, will continue to support its business.

In addition, the company will maintain its parts depots in Chennai, Delhi, Kolkata, Mumbai and Sanand. It will also have a smaller network of suppliers to support engine manufacturing for exports.

The sales of all the current cars models will be ceased when the stock at the dealership will be completely sold out but, it will provide parts, service and warranty support to its customers says Ford.

Ford Motors says that they will import cars such as Mustang, all new hybrid cars and electric vehicles such as Mustang



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