The Federation of Automobile Dealers Associations (FADA), in a letter to India’s Ministry of Industry, said the sudden exit by global companies “causes great distress.”
see photosThe American company said this month that it would stop making cars in the country.
India’s top auto dealers group has asked the Indian government to draft rules to protect its interests when global automakers decide to leave the market, as Ford has said it will do.
The US company said this month that it would stop making cars in the country and end its more than two-decade-long presence. It took a $2 billion hit and said it does not see a path to profitability, but the Auto Dealers Group said it has left dealers in the lurch.
The Federation of Automobile Dealers Associations (FADA), in a letter to India’s Ministry of Industry, said the sudden exit by global companies “causes great distress.”
Read also: FADA urges government to monitor Ford India’s dealer compensation structure
Ford is the fifth major automaker to stop manufacturing in India since 2017 after the exits of General Motors and Harley Davidson.
Reuters has seen a copy of the letter dated September 21.
India’s Ministry of Industry could not be reached for comment outside regular business hours.
“We have a plan in place that ensures continued viable business for our dealer partners,” Ford said in a statement. He added that it is also working with them to support existing customers.
“We are confident that they (Ford) will hold discussions with the utmost confidence and transparency,” said Rajesh Shah, president of the Ford Dealer Council.
Ford is the fifth major automaker to stop manufacturing in India since 2017 after the exits of General Motors and Harley Davidson.
FADA said dealers invested about 24.85 billion ($337 million) in retail outlets of the five brands whose exit has resulted in the loss of about 64,000 jobs.
Read also: MG Motor India wants to acquire Ford’s manufacturing facilities: Report
FADA’s letter asked the ministry to draft a law to “protect the interests of dealers and customers in India”.
The group also called for legislation that would ensure that customers and dealers have access to adequate information about unfair termination of dealership agreements.
0 notes
FADA said dealers invested about 24.85 billion ($337 million) in retail outlets of the five brands whose exit has resulted in the loss of about 64,000 jobs.
for the latest auto news And ReviewFollow carandbike.com Twitter, Facebookand subscribe to our youtube Channel.
.