Ford to cease vehicle manufacturing in India and only import low-volume premium products

Ford has announced that it will stop vehicle manufacturing in India, but will continue to support existing customers with service, parts, and warranty. Ford says that it will import only low-volume premium cars like the Mustang.

Ford, the American carmaker has announced that it will cease vehicle production in India. The carmaker has stated that it will gradually cease its vehicle assembly operations in Sanand by the fourth quarter of 2021 and its engine manufacturing in Chennai by the first half of 2022. Ford has said that it will import low-volume premium products like the Mustang, and continue to support existing customers with service, spares, and warranties.

Ford, however, will keep its engineering and engine manufacturing plant in Sanand, operational. This plant manufactures engines for vehicles sold in international markets, such as the Ford Ranger. Ford also promises to look after its dealers by ensuring that their inventory is liquidated and they stay profitable while offering service to customers. For the bookings the manufacturer was not able to honour, Ford will refund the money to customers.

Ford stated, ‘We are not exiting the market, this is a restructuring of our business. Our existing customers will have service, spare parts, warranties, repairs and other assistance available to them. An assessment team is working on keeping spare parts available for existing customers for the foreseeable future.’

Ford’s decision follows the company’s accumulated loss of $2 billion in the decade and a $0.8 billion non-operating write-down of assets in 2019. Following the announcement, Ford India’s employees will be reduced to a little over 500 people working in the Sanand engine facility, and about 100 who look after parts distribution and customer support.

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