Ford India will cease manufacturing vehicles in India
Ford India will cease manufacturing vehicles for sale in India immediately; manufacturing of vehicles for export will wind down at Sanand vehicle assembly plant by Q4 2021, and Chennai engine and vehicle assembly plants by Q2 2022.
Approximately 4,000 employees are expected to be affected by the restructuring. Ford will work closely with employees, unions, dealers and suppliers to care for those directly impacted, a press release states. Following accumulated operating losses of more than USD 2 billion over the past 10 years and a USD 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. More than 500 employees at the Sanand Engine plant, which produces engines for export for the Ranger pickup truck, and about 100 employees supporting parts distribution and customer service, also will continue to support Ford’s business in India. “As part of our Ford+ plan, we are taking difficult but necessary actions to deliver a sustainably profitable business longer-term and allocate our capital to grow and create value in the right areas,” said Jim Farley, Ford Motor Company’s president and CEO. “Despite investing significantly in India, Ford has accumulated more than $2 billion of operating losses over the past 10 years and demand for new vehicles has been much weaker than forecast. Ford India will maintain parts depots in Delhi, Chennai, Mumbai, Sanand and Kolkata and will work closely with its dealer network to restructure and help facilitate their transition from sales and service to parts and service support.