Following a US$2 billion loss in the last decade the Ford Motor Company is restructuring its retail and production business in India.
Much like Australia and New Zealand, Ford India will become a national sales company importing vehicles such as the Mustang from the globally available product portfolio.
Australia and New Zealand Ford dealers will be unaffected by the imminent closure of the vehicle assembly plants in Sanand and Chennai as the Indian-built Ford EcoSport was replaced by the Romanian-built Puma in both markets more than 12 months ago.
Ford India says more than 4000 employees are affected by the restructuring. The company says it will work closely with employees, unions, suppliers, dealers, government, and other stakeholders in Chennai and Sanand to develop a fair and balanced plan to move forward.
Sales of current Indian products such as the Figo, Aspire, Freestyle, EcoSport and Endeavour will cease once existing dealer inventories are sold says Ford and it will continue full customer support for these vehicles with service, aftermarket parts and warranty coverage.
Ford India says that some of its current dealer network will transition from sales and service to parts supply and service. It will maintain parts depots in Delhi, Chennai, Mumbai, Sanand and Kolkata to facilitate the transition of the business.
More than 500 employees at the Sanand Engine plant, which produces engines for export for the Ford Ranger and about 100 employees supporting parts distribution and customer service, will continue to support Ford’s business in India.
The company says will also maintain a smaller network of suppliers to support engine manufacturing for exports and will work closely with other suppliers to ensure a smooth wind-down of vehicle manufacturing.
Ford says it will focus on growing its Ford Business Solutions capabilities and team in the country, as well as engineering and engine manufacturing for export. It currently has more than 11,000 team members currently in India.
It will also continue to rely on India-based suppliers for parts for its global products, and vendors supporting Ford Business Solutions as normal.
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