Ford has recently announced that it would be shutting down manufacturing facilities in Sanand and Maraimalai plants. This may be the initiation of the long suspected exit from India of the motor giant. The move may impact almost 4000 employees of Ford India. The motor company took to their social media platform Twitter to inform the country about their intentions of shutting down the two plants and continuing the supply of cars through import routes.
Take a look at the tweet below.
Ford Restructures India Operations: To cease vehicle manufacturing in Chennai & Sanand; Progressively wind-down manufacturing of vehicles for export at Sanand plant by Q4 2021 & Chennai engine/vehicle assembly plants by Q2, 2022; To continue engine manufacturing for export. pic.twitter.com/E1PXmW7Rgq
— Ford India (@FordIndia) September 9, 2021
In the tweet Ford says, " Ford Restructures India Operations: To cease vehicle manufacturing in Chennai & Sanand; Progressively wind-down manufacturing of vehicles for export at Sanand plant by Q4 2021 & Chennai engine/vehicle assembly plants by Q2, 2022; To continue engine manufacturing for export."
Ford to stop local production in India: Reasons
Ford Motor Co. has also informed that it had accumulated losses of more than 2 billion dollars over the past decade which is why it " is looking to create a sustainably profitable business in India."
Anurag Mehrotra, President and MD at Ford India, said, " The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s car market."
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In case the domestic car maker Mahindra & Mahindra cracks a deal with Ford to begin a joint partnership, it would give a new lease of life to Ford. It would help Ford produce cars at a lower cost than it presently does but would restrict its independence as a motor company. This US car maker company entered the market of India 25 years ago but has still less than 2% share in the market of India. The demand for the vehicle has also been weak in the Indian territory.
Ford has not launched any new model for quite some time now in India and apart from its two cars- Endeavour and EcoSport not much has been the first choice of the Indian population.
Fate of the current car users:
One of the users asked Ford if it was leaving India to which Ford replied that it is trying to go for anew asset light business model with reforms. It is certainly not leaving India. Take a look at the series of tweets below.
Ford Are You Leaving 😥😥
— Kunal Kulkarni (@kunalk3235_) September 9, 2021
Hello, Kunal: Ford is NOT leaving India. A new, asset-light business model is being created with the reforms we announced today. This business model will be more profitable in the long run. ^VG
— Ford India Service (@FordIndiaHelp) September 9, 2021
Ford has also informed that it would continue its services for the users of the cars already sold in India. It is because, since the announcement, the Ford card users have been worried about the services of their cars and the parts that would be available later.
Take a look at another tweet here by Ford India
Ford Restructures India Operations: To serve customers with iconic global vehicles & electrified SUVs i.e. Mustang coupe & Mustang Mach-E.
— Ford India (@FordIndia) September 9, 2021
Customers to benefit from Ford’s global plan to invest >US$30 billion towards delivering all-new hybrid & fully electric vehicles. pic.twitter.com/gQIfu4ApIV
Currently in India Ford Figo, Ford Aspire, Ford Freestyle, Ford EcoSport and Ford Endeavour are running on roads. The sales of the already made models would continue till the stocks last but no new production would be done. However, cars like Mustang Mach-E, Mustang coupe etc would continue to be imported.
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