Ford India announced a dramatic restructuring effort today that will see it shut down most of its manufacturing sites in the country, resulting in as many as 4,000 employees being laid off.
“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’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.”
As a result of the decision, Ford will wind down vehicle assembly in Sanand by the fourth quarter of 2021 and vehicle and engine manufacturing at its Chennai plant by the second quarter of 2022.
Read Also: Ford And Mahindra Call Off Plans For Joint Venture
Locally produced vehicles like the Figo, Aspire, Freestyle, EcoSport, and Endeavour will stop being available once dealer inventories are sold. Ford, though, will keep production at the Sanand engine manufacturing plant, which produces engines for the Ranger for export.
The automaker will continue to offer full customer support operations for locally produced vehicles with service, aftermarket parts, and warranty coverage. It will begin importing vehicles like the Mustang coupe and hinted that the hybrid and electric vehicles it will produce in the coming years will also be available to Indian customers.
“Ford has a long and proud history in India. We are committed to taking care of our customers and working closely with employees, unions, dealers, and suppliers to care for those affected by the restructuring,” said Anurag Mehrotra, president of Ford India.
The company said it will continue investing in its Ford Business Solutions team that currently employs more than 11,000 people in India. It will expand the business to provide more opportunities for software developers, data scientists, R&D engineers, and finance and accounting professionals.
“We are grateful to our dedicated team in India who have undertaken many actions in recent years in an attempt to position the company for profitability and growth,” said Steven Armstrong, transformation officer, South America and India. “Our ability to refocus our presence in India is a result of their building our expertise in low-cost engineering, global engine manufacturing quality, and business services.”
