On Thursday, Ford Motor officially announced that it will shut down it's operations in India. They issued a statement today saying that the company will not manufacture cars in the country anymore.
Production at the Sanand (Gujarat) facility will shut by the fourth quarter of 2021 while production at Mariamalai near Chennai in Tamil Nadu will shut down by the second quarter of 2022.
The decision to stop vehicle production in India comes 23 years after the company started producing it's own cars for the market in 1998. Ford entered the Indian market in 1995 in partnership with Mahindra, called Mahindra Ford India Limited (MFIL) in 1995. Three years later, Ford separated from Mahindra to set up Ford Motor India.
- However the decision may not come as a surprise. Ford has been facing massive operating losses, more than $2 billion over the past 10 years, and a $0.8 billion non-operating write-down of assests in 2019.
Ford will continue to provide customers in India with ongoing parts, service and warranty supports. Sales of existing products will cease once existing dealer inventories are sold.
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