Published by Pallavi pandey
ꜰᴏʀᴅ ᴍᴏᴛᴏʀ tᴏ ᴄᴇᴀꜱᴇ ᴍᴀᴋɪɴɢ ᴄᴀʀꜱ ɪɴ ɪɴᴅɪᴀ, ᴛᴀᴋᴇ $2 ʙɪʟʟɪᴏɴ ᴄʜᴀʀɢᴇ
ʙy- Anushka PariharFord Motor Co. will stop making cars in India and record roughly $2 billion in restructuring charges, scaling back significantly in a country that past management saw becoming one of its three biggest markets.
Ford today said that it will shut down both of its plants in the country, becoming the latest automaker to exit the market. The US automaker will wind down an assembly plant in Gujarat by the fourth quarter, as well as vehicle and engine manufacturing plants in Chennai by the second quarter of next year.
Manufacturing of vehicles for sale in India will stop immediately, and about 4,000 employees will be affected, the carmaker said in a statement. “The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s car market," said Anurag Mehrotra, managing director of Ford India. “We have not been able to find a sustainable path forward to long-term profitability that includes in-country vehicle manufacturing."
Ford made the decision as it was not profitable for them to continue, according to a Reuters report, adding that the process will take about a year to complete.
The US automaker will continue to sell some its cars in the country through imports, said a report, adding that it will also provide support to dealers to service existing customers.
Ford is the latest carmaker to cease production in India, following companies such as General Motors and Harley Davidson to exit a market, which once promised exponential growth.
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