American automobile company Ford has decided to close its vehicle manufacturing factories. Ford has been struggling for a long time in the country market. After Covid, the situation of the company got worse. There has also been a steady decline in the sales of the company's vehicles. However, the company will continue to provide services to its customers. According to the news, the company has suffered a loss of about $ 2 billion.
Anurag Mehrotra, President, and Managing Director, Ford India said, "Ford will continue to provide ongoing parts, service, and warranty support to customers in India. Existing products such as Figo, Aspire, Freestyle, EcoSport, and Endeavor will be sold through existing dealer inventory. Ford has a long and proud history in India. We are committed to working closely with employees, unions, dealers, and suppliers to take care of our customers and those affected by the restructuring."
A source close to the company confirmed that Ford has decided to stop manufacturing at its Sanand (Gujarat) and Maraimalai (Chennai) plants as it does not see any significant gains in India. At the same time, it is also being claimed in media reports quoting sources that the company will continue to sell some of its cars in the country through import. It follows the lines of General Motors, which exited India in 2017.
The company will retain its engine plant in Sanand, Gujarat, and continue to service its products in India. Sources said the company will continue to sell its marquee Ford Mustang and Ford Endeavor in India. Ford's decision will affect the 4000 employees working in its factory. The company's top management told the employees that it will sharply reduce the production of popular models made in India such as Ford Figo, Ford Freestyle. However, the company will continue to operate the engine plant at Sanand. The company also has parts depots in Delhi, Chennai, Mumbai, Sanand, and Kolkata.
The Sanand Vehicle Manufacturing Plant, which is operating at less than 10% capacity, is likely to be shut down first. At the same time, the Chennai plant can be continued till 2022 to service global orders and consolidated Indian operations. At the same time, the company will continue to provide services to the existing model in India.
Ford's manufacturing units in India are at Maraimalai and Sanand, which employ about 4,000 employees. The engine plant at Sanand has more than 500 employees. which produces engines for the best-selling Ranger pickup truck. About 100 employees here support parts delivery and customer service. However, the company has over 11,000 employees across the country.
In August, Ford sold 1,508 units across the country against 4,731 units in August last year. That is, there was a decline of 68.1% in the company's sales. According to a FADA report, 3,604 vehicles of Ford India Pvt Ltd were registered in the passenger vehicle segment in August. At the same time, its market share was only 1.42%. The company's market share stood at 1.90% in August 2020.
Ford entered India in 1995 in partnership with Mahindra. At that time the name of the company was Mahindra Ford India Limited (MFIL). Ford India touched 1 million (1 million) customers in July 2018. Then Anurag Mehrotra, President and Managing Director of the company said that we are proud to reach 1 million customers in India. We are indebted to our customers for their trust. We will continue this effort in India.
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