Ford Motor Company, one of the first global automakers to join the Indian market after the 1991 liberalization has chosen to stop its manufacturing operations in India.
The American brand’s representative said that the company had lost more than $ 2 billion in the previous ten years. The phased closure of its two manufacturing facilities in Sanand, Gujarat, and Chennai, Tamil Nadu, would negatively impact as nearly 4000 employees.
Of course, the impact is enormous, especially at a time when people are already suffering from the effects of COVID-19. In light of this, I’ve launched a brand poll on Twitter asking, “Do you want Ford to stay back in India?” In which 64.4% of respondents responded YES, they want Ford to stay back in India, while the remaining 35.6% said NO.
Existing owners will undoubtedly be affected by the decision to stop local production, but Ford has agreed to continue full support operations with service, aftermarket parts, and warranty services. Dealers will also be open for business as the network will continue to serve. Customer touchpoints, on the other hand, maybe reduced, particularly in smaller towns.
Undoubtedly, it’s a big hit to the Indian economy, which will affect too many people’s lives. However, Ford will maintain its presence in India and expand its business solutions team, which will provide global support for Ford. The brand even said that they would continue to employ the company’s second-largest salaried workforce internationally and continue manufacturing engines for export until Q2 2022.
But, market experts believe that Ford’s exit will benefit companies in the utility vehicle category, whereas I strongly think a global brand like Ford leaving India surely will affect the brand image of India. Let us not forget earlier Fiat, Harley Davidson, and now Ford is leaving the country will make potential foreign investors rethink investing in India.
Let’s see how it will impact the whole thing. Meanwhile, do let me know – what do you think Ford’s exit will be beneficial or detrimental?