Ford’s Indian operations will close after 26 years; what will happen to existing customers?

There are roughly 4,000 individuals who would lose their jobs when the two production units in Sanand (Gujarat), as well as Chennai (Tamil Nadu), are phased out.

One of the first multinational automakers to join India’s market following the 1991 liberalisation has opted to shut down its operations in the country, Ford Motor Company.

An estimated 4,000 employees will be affected by the company’s decision to phase out its two production facilities in Sanand, Gujarat, and Chennai, Tamil Nadu.

Ford To Leave India?

Automaker says it will not leave the nation, but there is no clear direction on how to recompense its employees and dealerships.

In other words, Ford is NOT leaving India. To develop a new, asset-light business model that is sustainably successful in the long run, Ford announced today’s reforms.

How Will It Impact Employment?

While maintaining parts facilities in Mumbai, Sanand and Kolkata and working closely with its dealer network to revamp the company’s business model and smooth the shift from sales to parts-and-service.

President and CEO of Ford Motor Company Jim Farley said: “India remains strategically vital for us, and because of our growing Ford Business Solutions team, it will continue to be a substantial and essential workforce base for Ford globally.”

For global assistance, the company plans to dramatically grow its 11,000 personnel business solutions workforce in Chennai in the next few years.

Forty-five hundred people are employed at the Sanand Engine Plant, which makes engines for export, and another 100 people are employed in parts distribution or customer service.

For instance, Ford aims on selling the Mustang coupe in India as part of its restructuring plans.

More than 30 billion dollars of global investment is planned to produce all-new hybrid and fully electric vehicles, such as the Mustang Mach-E in India, according to the company.