Ford Motor Company Ramps up its Manufacturing Units in India

Ford Motor Company has announced its plan to halt manufacturing activities in India with a total loss of about $2 billion. More than 4000 employees will be impacted by the decision as Ford ceases to be an international brand.  The senior managers informed staff that the manufacturing of their popular Indian models, for example, Ford Figo, Ford Freestyle will be drastically scaled-down.

The rushed Ford Indian leadership mirrored the troubles surrounding the US carmaker’s voyage to India, as it is struggling due to weak domestic volumes, dropping exports, and lack of fresh local market goods. It follows General Motors’s 2017 departure from India. However, the company will maintain its Sanand, Gujarat engine factory and continue to operate in India. Reports indicated that Ford Mustang and Ford Endeavor will continue to market their brand in India.

The decision on the shutdown has been reached, as the Ford Motor Company, India was responsible to have produced more than $1-1,5 billion of losses, and it was documented alone in the past several years. As the plants continue to resume for the coming 7 quarters, by that dating company will be able to find the bidder for the plants. The Sanand facility is expected to be shut down first and as it is operating with less than 10 percent capacity. In addition, the Chennai factory may continue to carry out the pending worldwide orders and Indian consolidated operation until 2022.

The firm will not completely make its way out from India, but it will be there in India only with niche models with fully knocked or fully built vehicles. It serves current consumers further. Ford Business Center and the product development center for the worldwide enterprises will continue to operate. Even the engine factory that manufactures intermediate panther engines will continue to function for global demands.

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