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Old 15th July 2021, 08:15   #1
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Default Rumour: Ford to wrap up India operations

Ford looks to wrap up India factory ops soon ?

The American automaker has been in talks with various car companies for both contract manufacturing and/or sale of its Indian factories, the latest with Ola, which could use Ford’s factories to build electric.

Quote:
Ford is looking to wrap up its Indian manufacturing operations and may take a call on its Maraimalainagar and Sanand factories later this year.
Link to ET Article

GTO's earlier posts on the topic:
Quote:
Originally Posted by GTO View Post
I put the odds of Ford staying in India vs exiting India at 50 : 50. On the one hand, they have been around for 2+ decades, have good products, a better reputation than 10 years ago and SUVs / Crossovers that are profitable + selling well (EcoSport, Endeavour).

On the other hand, Ford USA has been ruthless with getting rid of money-losing products & markets. In what was a controversial move, they got rid of smaller cars in the USA, choosing to sell only SUVs, Trucks, Crossovers & the Mustang. Ford also announced that it will stop making cars in Brazil. Ford's American CEO would be fed up of Ford India. In the 1-hour / month that he would spend looking at Ford India's reports, he would only see a poor ROI, a divorce (Ford-Mahindra) and hyper-aggressive competition from the entrenched players like Maruti & Hyundai.

Take a look at our sales charts and you will see that the only way to survive or grow in India is "new products". Maruti, Hyundai, Tata, Kia, Renault etc. are only growing stronger because of fresh new cars. Ford India needs a minimum investment of 10000 - 20000 crore in the coming years for its new cars. Will Ford USA invest? I don't think so. Let's not forget additional investments needed in the 5 - 10 year timeline for a shift to EVs.

If Ford India does stick around, it will only be with minimal new investments and selling cars picked from its global portfolio. Like Ford USA, the product portfolio will be trimmed and they will only be a seller of a fewer number of products with fatter margins (read = SUVs & Crossovers). No chance of any mass market aspirations. If Ford is still in India in 2030, it will be a selling a smaller range of cars in segments that aren't brutal. I don't see any hatchback or compact sedan in Ford India's future. The company - if it maintains a presence here - will be massively downsized.
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Originally Posted by GTO View Post
Sort of worried, guys. I'll put Ford's chances of exiting India at 50 - 60%. Don't think they will do a complete exit like GM because Ford has earlier subtly indicated (via their Mahindra JV) that they would like to maintain a foot in the door (keeping future Indian prospects in mind).

But Ford HQ @ USA has demonstrated that it will not tolerate any money-sucking businesses. Heck, they completely abandoned the hatchback & sedan market there, to focus only on profitable SUVs, trucks, crossovers & the Mustang. Ford has already exited markets where it had no future.

The company has been around for 20+ years in India and has little to show for it. Competition is also getting fiercer with new entrants like Kia, resurgent players like Tata and stalwarts like Maruti + Hyundai fighting tooth & nail for every sale.

Over & above, the future of electric cars requires huge investments. Can Ford ask USA HQ for big investments after losing money for a majority of its time in India? No way.

Last edited by GTO : 16th July 2021 at 08:20. Reason: Adding my posts for additional perspective - thanks!
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Old 15th July 2021, 08:22   #2
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Default Re: Ford - Mahindra call off their engagement; no JV happening!

This news and then there are reports of an impending launch of Figo AT in the next few weeks. Ford also discontinued a variant of Endeavour.

Are they in stock clearance mode already?

But then they're testing a facelift of the Ecosport too.
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Old 15th July 2021, 08:29   #3
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Default Re: Ford - Mahindra call off their engagement; no JV happening!

Nice, this after I, an ex GM owner went ahead and took a leap of faith and booked an Ecosport

Should I take this Indication and cancel? This was my number one concern on booking a Ford.

The sales person was very confident about Fords future plans and also said that if not for the pandemic, the Ford Territory would have been launched.
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Old 15th July 2021, 09:42   #4
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Default Ford looking to wrap up Sanad and Marimalainagar plants ?

Ford is looking to wrap up manufacturing operation at Maraimalainagar and Sanad plants by this year. Says it is in talks with Ola for contract manufacturing.


Read more at:
http://timesofindia.indiatimes.com/a...campaign=cppst
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Old 15th July 2021, 09:53   #5
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Default Re: Ford looking to wrap up Sanad and Marimalainagar plants ?

Quote:
Originally Posted by condor View Post
Ford is looking to wrap up manufacturing operation at Maraimalainagar and Sanad plants by this year. Says it is in talks with Ola for contract manufacturing.


Read more at:
http://timesofindia.indiatimes.com/a...campaign=cppst
I believe it's just a matter of time before they hang up their boots! They have not announced a single new product for India in the last few years, which is a clear sign of their intentions.
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Old 15th July 2021, 10:21   #6
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Default Re: Ford looking to wrap up Sanad and Marimalainagar plants ?

Damn! What we have left? Thank god at least Skoda and VW decide to stay. Now except VAG, everything in this country is dull, dreary and boring.

This really pains me when car manufacturers decide to leave this country. I have a soft spot for Ford. They are accessible and sensible. People like me ruin this country by buying only Maruti and Hyundai. I have taken a pledge that my next car will not be a Maruti or Korean and definitely never a Chinese.

Last edited by amvj : 15th July 2021 at 10:22.
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Old 15th July 2021, 10:22   #7
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Default Re: Ford looking to wrap up Sanad and Marimalainagar plants ?

Looks like the total installed capacity of these plants is in the region of 400000 per annum.
Ford is barely able to utilize a tenth of that!

No wonder, they are keen to leave!
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Old 15th July 2021, 10:49   #8
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Default Re: Ford looking to wrap up Sanad and Marimalainagar plants ?

Earlier it was reported they were in talks with Citroen India for contract manufacturing?

Sad to see this sorry state of affair at Ford India, no wonder they keep cutting costs and removing features from existing cars left, right and centre! They just launch facelifts because they have no future plan in place!
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Old 15th July 2021, 10:56   #9
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Default Re: Ford looking to wrap up Sanad and Marimalainagar plants ?

Very sad to see Ford leaving. I have very fond memories of our Ikon 1.6 and then the first gen Figo Tdci. I came close to buying an EcoSport twice but it was not compelling enough.

Ford has no one but themselves to blame. After EcoSport, they have diluted their brand by being neither here nor there, not being proactive enough (surprising since they were the ones to create the sub 4m suv segment!!) with product updates and new launches, always fiddling around with the product unnecessarily - one can go on and on....

Is it time for RIP Ford India?
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Old 15th July 2021, 11:05   #10
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Default Re: Ford looking to wrap up Sanad and Marimalainagar plants ?

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Originally Posted by amvj View Post
Damn! What we have left? ...People like me ruin this country by buying only Maruti and Hyundai. I have taken a pledge that my next car will not be a Maruti or Korean and definitely never a Chinese.
Oh God! Why do you say it like that? You love Ford and that's all right but why say others are ruining the country!

You see, if Ford had continued the successful formula of the 1st Gen Figo and EcoSport and had more service centers, then people would have atleast considered it. They are facing the results of their own doings.

Why would a person who doesn't live in town and cities buy a car whose service center is far away unless he's truly determined and dedicated? A Hyundai, MS, Tata, Mahindra service centers are at so many places that buying them isn't a choice of "why to buy" but just of "what to buy".

My opinion is that if a company does its bit then it does get rewarded. Currently Renault and Nissan for example, which is upto them as to how they manage their success and make it last long. Ford on the other hand tasted success with Ikon, Old Fiesta, Figo, EcoSport and even Endeavour but just could not manage to sustain it.

Last edited by RavSam : 15th July 2021 at 11:06.
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Old 15th July 2021, 11:21   #11
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Default Re: Ford - Mahindra call off their engagement; no JV happening!

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Originally Posted by 400notout View Post
Should I take this Indication and cancel? This was my number one concern on booking a Ford.

The sales person was very confident about Fords future plans and also said that if not for the pandemic, the Ford Territory would have been launched.
By regulation, there will be enough and more support provided to vehicles even if the manufacturer stops sales in India. There is no reason to cancel purchase of the car based on speculation, because even on a worst case scenario, you will not have any issues with the ownership of the vehicle. There are many lakh of Ford vehicles across the country, and there is scant possibility of owners being left in the lurch.
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Old 15th July 2021, 11:28   #12
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Default Re: Ford - Mahindra call off their engagement; no JV happening!

Quote:
Originally Posted by 400notout View Post
Nice, this after I, an ex GM owner went ahead and took a leap of faith and booked an Ecosport

Should I take this Indication and cancel? This was my number one concern on booking a Ford.

The sales person was very confident about Fords future plans and also said that if not for the pandemic, the Ford Territory would have been launched.
Postpone it, if you can, by a month or two. By then, Ford should come out with a clarification if they are indeed exiting the country.

Otherwise, just think if you would be happy enjoying the Ecosport even if Ford makes the exit. If you love the car and are willing to take the leap of faith, then go ahead with the purchase. There are enough Ford cars on the road and they will continue to provide support (resale might be hit if the exit happens).

Last edited by BlackPearl : 15th July 2021 at 17:28. Reason: Minor typo. Thanks.
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Old 15th July 2021, 11:35   #13
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Default Re: Ford - Mahindra call off their engagement; no JV happening!

Quote:
Originally Posted by 400notout View Post
Nice, this after I, an ex GM owner went ahead and took a leap of faith and booked an Ecosport

Should I take this Indication and cancel? This was my number one concern on booking a Ford.

The sales person was very confident about Fords future plans and also said that if not for the pandemic, the Ford Territory would have been launched.
I really don't get Ford. They've got a wonderful range on sale in the UK which are RHD and would make good options in India, the Territory would be an excellent option if priced even half decently, the raptor would would kill in the 18-28l range but they're not releasing a single vehicle. I'm honestly wondering if I should go ahead and sell my 2018 EcoSport S while I can still get some money for it.
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Old 15th July 2021, 11:40   #14
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Default Re: Ford - Mahindra call off their engagement; no JV happening!

There is a higher chance of Ford exiting than staying, so if anyone is banking on them to re-think, it is risky.

For the last few years Ford has been going through a global restructuring of their operations and they are ready to absorb large one-time costs when exiting markets. This has happened in Brazil, where Ford has written off costs worth $4-$5 billion while shutting down plants, selling off assets, taking tax hits etc.

Ford exited Indonesia and Japan in 2016, shutdown two assembly plants in Russia 2019, cut jobs and sold off engine/transmission plants in UK, close down Belgium Genk plant in 2014 etc etc.

Their strategy is simple. If 85% of the profits are coming from USA-Canada, why bother with the rest of the world?

Going ahead Ford is going to concentrate only North America, cheaper platform-shared cars in Europe with VW and Chinese-JV developed cars for the China market.
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Old 15th July 2021, 12:03   #15
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Default Re: Ford - Mahindra call off their engagement; no JV happening!

Quote:
Originally Posted by volkman10 View Post
Ford looks to wrap up India factory ops soon ?

The American automaker has been in talks with various car companies for both contract manufacturing and/or sale of its Indian factories, the latest with Ola, which could use Fordís factories to build electric.



Link

Trust the media to put out such sensational headlines. Some media houses have put out the article saying 'Ford looking for a new partner' which sounds more realistic.

It's a known fact that Ford is stuck with excess capacity and hence it is crucial to fill it up to check their losses. Even with their upcoming BX SUV's, they will at best probably fill up one plant and the rest depends on their export plan.

My view is they are staying, otherwise why will they invest further into a facelift Ecosport, Figo AT, etc. The new projects are also on track but probably delayed till they finalise the powertrains now that the Mahindra JV is out of the window.

Ford has said they will comment in the second half of the year, so let's wait and see.
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