Ford Motor to shut down 2 manufacturing plants in India, to sell only imported vehicles: Report
Synopsis
For years, Ford has struggled to create a name for itself in India's automotive industry. Ford India has a built-in capacity of 6,10,000 engines and 4,40,000 cars per year.
US automaker Ford Motor Co would close its two manufacturing units in India and sell solely imported vehicles in the nation as part of a restructuring effort. The firm, which invested around USD 2.5 billion in its Chennai (Tamil Nadu) and Sanand (Gujarat) plants, would discontinue vehicles sales like the EcoSport, Figo, and Aspire made at these facilities. In the future, it will exclusively sell foreign automobiles in the nation, such as the Mustang.
The firm is anticipated to make an official statement soon. For years, Ford has struggled to create a name for itself in India's automotive industry. Ford India has a built-in capacity of 6,10,000 engines and 4,40,000 cars per year. It also exported models like as Figo, Aspire, and EcoSport to over 70 markets worldwide.
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In January of this year, Ford Motor Company and Mahindra & Mahindra announced the cancellation of their previously announced automobile joint venture to continue separate operations in India.
The two businesses signed a deal in October 2019 in which it was decided that Mahindra & Mahindra will buy a majority share in a wholly-owned Ford Motor Co (FMC) branch that will take over the US automaker's vehicle operations in India. The new business was to produce and distribute Ford brand automobiles in India and sell both Mahindra and Ford vehicles in high-growth emerging countries.
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Ford is the second American automaker, behind General Motors, to close operations in India. General Motors stated in 2017 that it would cease selling automobiles in India since its fortunes had not improved after striving for almost two decades to establish a name for itself. The firm sold its Halol factory in Gujarat to MG Motors while operating its Talegaon plant in Maharashtra for exports but ceasing manufacturing there in December.
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