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Old 15th September 2021, 18:41   #391
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Default Re: Ford to stop manufacturing cars in India

A smart investor should be able to see an opportunity here. The Cabinet has cleared the PLI scheme for the auto sector, ensuring support for players investing new capital into the Indian auto sector.

So anyone buying Ford's factories, not only do they get 'ready to manufacture' facilities and can hit the ground running, but also avail government benefits!
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Old 15th September 2021, 19:00   #392
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And now another spanner in the works of Ford India for its factory operation shutdown. The 4000 odd Ford employees have approached the T.N. state government to intervene and save their jobs. In their letter to Mr T.M. Anbarasan, the Tamil Nadu Rural Industries Minister they have asked for intervention.

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“Thousands of workers are at the risk of losing their jobs as a result of Ford's decision to shut its Chennai factory," the letter from the Chennai Ford Employees Union reportedly states, asking the minister to provide alternate jobs.

There have been isolated protests against Ford India as well with many demanding an intervention from the government.
While we all very well know how far such petitions to the concerned or any other Minister are helpful, the hapless Ford employees will have to rely on some hollow assurances.

The link which lists this news says in its last para that this is Ford's second entry and exit from India.

https://auto.hindustantimes.com/auto...682246670.html

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Ford Motor's journey in India began in the 1920's when it came to the country as a subsidiary of Ford Motor Company of Canada, before exiting in the early 50's. In 1995, Ford returned to India, this time in collaboration with Indian vehicle manufacturer Mahindra and Mahindra. Ford and Mahindra had severed ties in between, and Ford became Ford Motor India Limited in 1998.
Ford's exit in the 1950's was after its last assembled models the Ford Prefect and Ford Popular followed by the Ford Consul (till 1954) cars and the trucks were required to be manufactured here and the new law would usher in the era of Licence Raj. In 1952, the government appointed the first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenisation of the Indian automobile industry. That law would allow imports initially and indigenisation would have to begin progressively in phases. And the government would introduce price controls on automobiles and allocate licences to automobile makers who fit the bill, limiting the manufacturing licences to the restricted few. Ford exited along with many other foreign car makers, who were assembling cars in India and who smelt what was coming up next.

The less known Ford's entry in the early 1980's was with the Tamil Nadu based Simpson and Company (TAFE group) when it started assembling a FC truck that was advanced in design but had a lot of axle failures.

Name:  Ford Simpson Truck 1980s India.jpg
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Teambhp however has not missed this early 1980's Ford truck. It is listed on this thread. Posts # 1,2 and 7 (above image from post # 7) have information about this truck.

https://www.team-bhp.com/forum/comme...cks-india.html (Ford Trucks in India)

They sold very well initially but soon the sales were down and Ford as usual packed its bags and exited. Hence this is the third exit of Ford after its debacle in car manufacturing.

Last edited by Aditya : 15th September 2021 at 21:14. Reason: As requested
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Old 15th September 2021, 21:17   #393
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Default Re: Ford to stop manufacturing cars in India

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Originally Posted by GTO View Post
A little birdie tells me that Ford didn't want to sit on dead stock of thousands of cars or parts. Hence, it intentionally misled the market by running mules of the EcoSport facelift & passing out rumours of the Endeavour Bi-Turbo to some of its dealers.
Well I know a Ford Dealer in Eastern part of India and he says 3 days back projections were taken for festive season and told us to place the orders.
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Old 16th September 2021, 08:30   #394
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Default Re: Ford to stop manufacturing cars in India

MG India interested in Ford plants.

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MG has evinced its interest but the talks are in very early stages.
Quote:
MG had earlier looked at the Ford facility for contract manufacturing though the pandemic and its impact on sales meant that its plans to expand capacity had to be put off. But now, ‘all options’ are being looked at including contract manufacturing as well as outright sale. With Ford left with few options, potential buyers are looking to strike a bargain.
Link

Last edited by volkman10 : 16th September 2021 at 08:31.
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Old 16th September 2021, 10:19   #395
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Originally Posted by GTO View Post
A little birdie tells me that Ford didn't want to sit on dead stock of thousands of cars or parts. Hence, it intentionally misled the market by running mules of the EcoSport facelift & passing out rumours of the Endeavour Bi-Turbo to some of its dealers.

Everyone lies. Even Mary Barra - CEO of GM USA came to India to announce a big $1 billion investment - then GM India coyly pulled the shutters down a year later.
That little birdie may well be talking out of his hat. Just how many cars & spares do you think are being talked about here. 5000, 10,000 cars and spares? Just how much would they be valued at? $100 million, $200 million? Ford has set aside $2 billion as charges for shutting down operations in India. This money will be used to pay statutory dues, maintaining infrastructure for continued product support & warranties, compensation of dealers and suppliers, and clearance of any legal matters that will arise from any such negotiations with dealers and suppliers.

Just what would have been the quantum of money it could have recovered by dumping spares and selling cars in stock? And just to do that, it would go through an elaborate surreptitious exercise to deceive the customers, dealers, it’s own work force and suppliers? That too by running and testing update cars on the roads. The cost of running these and testing these cars, the dies & tooling required to upgrade these cars is not insignificant. It just does not add up.

The facts are pretty simple (while everyone loves intrigue and conspiracies), in the typical style that American companies and their boards of management act (their infamous overnight hire and fire policies are a example), a decision was taken in Dearborn to shut down the operations and that decision was conveyed to Ford India to act upon. All boards of managements, ‘war game’ such scenarios and possibilities and have game plans ready for them for the ‘just in case’. There are no conspiracies involved here. It’s just how Americans do business; ‘ruthlessly’. The bottom line always comes first and foremost.

Last edited by PratikPatel : 16th September 2021 at 10:20.
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Old 16th September 2021, 11:21   #396
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Default Re: Ford to stop manufacturing cars in India

An op-ed on the reasons Ford chose to leave. Pretty simplistic in my opinion.
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Old 16th September 2021, 11:49   #397
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An op-ed on the reasons Ford chose to leave. Pretty simplistic in my opinion.
It is just me, or is this piece also not very well written from a grammatical standpoint? Certainly not befitting a former editor of Business Today/Business World.
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Old 16th September 2021, 12:00   #398
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Default Re: Ford to stop manufacturing cars in India

On a lighter note, here is an epic take by one of the owners on a Facebook group, received over Whatsapp:

Translation: "There was a safe and strong grip, why did you still leave?"

Ford to stop manufacturing cars in India-whatsapp-image-20210916-11.54.59.jpeg
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Old 16th September 2021, 12:24   #399
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Default Re: Ford to stop manufacturing cars in India

I was planning to replace my 2018 Ford Aspire Diesel with Bolero Neo when it was launched two months back (July 2021). Now, as the scenario has changed and Ford has exited, I am now in a dilemma whether to go ahead with the purchase or to hold back as I will get a terrible resale value of my existing vehicle. I would request you all to suggest me on the same.

Regards,
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Old 16th September 2021, 13:46   #400
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Originally Posted by scorpion41 View Post
I was planning to replace my 2018 Ford Aspire Diesel with Bolero Neo when it was launched two months back (July 2021). Now, as the scenario has changed and Ford has exited, I am now in a dilemma whether to go ahead with the purchase or to hold back as I will get a terrible resale value of my existing vehicle. I would request you all to suggest me on the same.

Regards,
If you could elaborate about your need to change the current car then the suggestions would be more specific. Personally, I feel 3 years is a very short time to change a car unless there is something going on in your mind. Given that there might not be so much demand for Ford in used car market in today's scenario, you may end up losing a lot on resale.
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Old 16th September 2021, 14:01   #401
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Originally Posted by Aviator_guy View Post
If you could elaborate about your need to change the current car then the suggestions would be more specific. Personally, I feel 3 years is a very short time to change a car unless there is something going on in your mind. Given that there might not be so much demand for Ford in used car market in today's scenario, you may end up losing a lot on resale.
I wanted to buy a compact SUV (TUV 3OO) before purchasing Aspire, but at that time, TUV had some coolant leakage issues and most of my colleagues/friends discouraged me from buying it and suggested me to go ahead with a hatchback or a compact sedan. I absolutely have no issues with Aspire and it is running like a charm, but the itching of owning an SUV is haunting me. Other than this, there is no requirement as such.
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Old 16th September 2021, 18:10   #402
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Got this email from Ford India CRM today (signed by Mr. Anurag Mehrotra), for whatever it is worth.
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Old 17th September 2021, 10:35   #403
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Also what happens to the resale value of this vehicle? Will it come crashing down or will it still hold in the market because of the product?
Keeping Ford A.S.S. out of the equation, I don't think you should have any issues when it comes to parts at least for the next 5 years. The Ford Endeavour is sold in various other markets in the Asia Pacific region under the name of the Ford Everest and the Ford Ranger pick up truck. Sourcing parts not available in India might be a hassle but at least it'll be possible and you won't be left high and dry.

Coming to resale value, it'll surely take a significant dip for the same reason.
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Old 17th September 2021, 12:43   #404
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Originally Posted by cool_dube View Post
While I am sad to see Ford leave us (it's our loss, as enthusiasts, not theirs), I am happy, and feel lucky, that I was able to get hold of a brand new Endeavour before it went out of production. Hope the after-sales experience does not disappoint.
From this position on 9th Sept. 2021 to now selling off your 7 month old Endeavour on 17th Sept. 2021. What exactly changed in this week?
I would like to know what went through the mind of such a big fan of the endeavour to bring about such a change.

This could help others make up their minds too. It was evident since the past year or so that this was going to happen. Why did you ignore the tell tale warning signs and what happened now? Please pen your experience for us. Thanks.
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Old 17th September 2021, 15:17   #405
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I would like to know what went through the mind of such a big fan of the endeavour to bring about such a change.
Fair question, Navpreet. I have, and will always be, a big fan of the Endeavour. However, as I mentioned in my post on the other thread, I no longer have the time or energy to run around, procuring parts and finding good FNGs to maintain it, should Ford ASCs fizzle out in terms of presence or quality of service. Having being bitten once by Mitsubishi service experience, and the subsequent toil (subjective, again) to maintain it, I do not want to take a chance. Peace of mind is paramount for me.

To be frank, I did not expect Ford to pull the plug the way they did, at least not for the next few years. Either that, or my blind love for the Endeavour persuaded me to get it home. Now that reality is sinking in, I have more or less made up my mind to let it go.

Hope I answered your question. If not, apologies for not being able to articulate my sentiments (yes, sentiments) well enough

Last edited by cool_dube : 17th September 2021 at 15:20.
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