- Ford to terminate manufacturing at both plants in India
- Will continue to offer CBU models
Ford India has announced that the carmaker will restructure its operation plans in India. With immediate effect, Ford India will suspend its manufacturing activities in the country. The American carmaker will wind down its Sanand assembly plant by Q4 2021 while the Chennai facility will stop operations by Q2 2022.
However, Ford will bring in CBU models to India like the Mustang Coupe, Ranger pickup, and even electric vehicles like the Mustang Mach-E. Not stranding its Indian patrons, Ford will provide customer support including service, aftermarket parts, and warranty coverage for the vehicles retailed. However, the sale of models in the current portfolio like the Freestyle, Figo, Aspire, and the Endeavour will come to an end once the existing dealer inventories are cleared.
Concurrently, due to the termination of production affairs, India will no longer be a manufacturing hub for exports. Approximately, 4,000 employees are expected to be affected by this reform.
Earlier this year, the Mahindra-Ford joint venture that was announced in October 2019 was called off by both the carmakers. This further recoiled Ford’s plans for the future models that were premeditated around the planned partnership.
Anurag Mehrotra, president and managing director of Ford India, said, “Ford has a long and proud history in India. We are committed to taking care of our customers and working closely with employees, unions, dealers and suppliers to care for those affected by the restructuring. The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s car market.”
