Ford India ends local vehicle production: All you need to know

Ford India has finally decided to end its vehicle manufacturing operations in India, and here is everything you need to know about it.

see photos

Ford no longer thinks it would be profitable to continue making cars in India

Ford India has surprised the Indian auto industry by announcing its decision to shut down local vehicle manufacturing. The company will no longer make cars in India and says it will now focus on expanding the Ford Business Solutions team as part of its major restructuring program. Now, one of the main reasons why Ford made this decision is because the company no longer feels that it will be profitable to continue making cars in India. While Ford had planned to enter into a joint venture with Mahindra to avoid this situation, it did not materialise. Now the company has finally decided to end its production operations in India, and here is everything you need to know about it.

0 notes

Read also: Ford to shut down local production in India, close both plants: Report

Ford is the latest carmaker to stop production in India after companies like General Motors and Harley Davidson

1. Pulling the plug on local production will inevitably mean that all made-in-India cars like Figo, Freestyle, Aspire, EcoSport and Endeavor will be discontinued. The sale of these existing products will cease once the existing dealer inventory is sold. However, Ford will continue to provide after-sales support for these vehicles such as service, aftermarket parts and warranty coverage.
   Read also: Ford & Mahindra ends collaboration on all projects in India
2. Things will largely remain the same for existing Ford customers. While Ford will no longer sell locally manufactured cars in India, its parts and service operations will continue as part of its regular business. In fact, Ford’s dealer network will now offer parts and service support rather than being a sales and service touchpoint. However, the resale value of the Ford car will start taking a big hit.
   Read also: From the editor’s desk: Ford should stay in India, but for the right reasons
   

   All made-in-India models like Ford Figo, Freestyle, Aspire, EcoSport and Endeavor will be discontinued.

3. In terms of product planning, Ford now plans to import and sell models from its global lineup, including the Mustang Coupe. Ford is investing over $30 billion globally to develop new hybrid and fully electric vehicles like the Mustang Mach-E, however, it is not yet clear whether they will come to India.
4. The company will continue to manufacture vehicles for the export market at its Sanand plant till the end of 2021. For the Chennai plant, which will continue to make engines and vehicles for the export market until the second quarter of 2022. However, Ford’s Sanand Engine Plant will continue to produce and export engines for the Ranger pickup truck. In addition, Ford will maintain its parts depots in Delhi, Chennai, Mumbai, Sanand and Kolkata.
   

   Ford now plans to import and sell models from its global lineup, including the Mustang

5. Around 4,000 employees are expected to be affected by the restructuring. Ford says it will work closely with employees, unions, suppliers, dealers, the government and other stakeholders in Chennai and Sanand to develop a fair and balanced plan to mitigate the effects of the decision. Ford will retain 500 employees and approximately 100 employees at the Sanand engine plant to support parts distribution and customer service.
6. Given the company’s plan to manufacture engines for the export market, Ford will maintain a small network of suppliers to support engine manufacturing. Ford says it will also continue to rely on its India-based suppliers for parts for its global products, while the suppliers and vendors that support Ford Business Solutions will continue to support the business in general.
   

   Ford says it will work closely with employees, unions, suppliers, dealers, the government and other stakeholders to mitigate the effects of the decision.

7. With regard to Ford Business Solutions, the company says it will focus on engineering and engine manufacturing for export, while simultaneously developing its team in the country. The company says that this will give more opportunities to software developers, data scientists, R&D engineers and finance and accounting professionals.

for the latest auto news And ReviewFollow carandbike.com Twitter, Facebookand subscribe to our youtube Channel.