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Old 9th September 2021, 15:06   #1
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Default Ford to stop manufacturing cars in India

You may have heard rumours about Ford planning to wrap up its India operations. Well, according to a recent report, the carmaker has decided to stop manufacturing vehicles at both the Sanand and Chennai factories.

Ford to stop manufacturing cars in India-1584463027722.jpg

Ford recently held a town hall for its employees to announce its plan to ramp down production of popular models. The decision comes as the company is said to have accumulated close to US$ 2 billion in losses over the last 10 years.

The carmaker will continue to serve existing customers with service, aftermarket parts and warranty coverage. Sales of current products such as Figo, Aspire, Freestyle, EcoSport and Endeavour will cease once existing dealer inventories are sold.

According to the company, the Sanand plant will shut down by Q4 2021, while the Chennai plant, will continue to operate until Q2 2022. While vehicle production will be stopped, the engine plant at Sanand will continue its operations. The Ford Business Centre and the product development centre will also continue to operate as well.

Link to Team-BHP News

Last edited by Aditya : 9th September 2021 at 15:45.
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Old 9th September 2021, 15:14   #2
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Default Re: Ford to stop manufacturing cars in India

Another American giant wrapping up. The marquee that gave India it's first and beloved sub 4m SUV, couldn't evolve with the modern times. Let this be an important lesson to all existing players, and the new ones with eyes on our soil.

They may continue to offer the Endeavour and the Mustang. But someone with even half a brain would not want one, knowing the Ford bosses are in process wrapping up the whole works.

Last edited by lemedico : 9th September 2021 at 15:35. Reason: Added a sentence
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Old 9th September 2021, 15:21   #3
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Default Re: Ford to stop manufacturing cars in India

Quote:
Originally Posted by TusharK View Post
The report states that Ford recently held a town hall for its employees to announce its plan to ramp down production of popular models like the Figo and Freestyle.

Manufacturing is expected to continue for the next seven quarters. The Chennai plant, on the other hand, could continue to operate until 2022.
]
After this announcement, I wonder how will be the acceptance for Ford models (Figo, Aspire, Ecosport) in the upcoming months (7 quarters). While I appreciate the transparency by Ford, IMO it won't boost buyer's confidence on their cars.

And of course, they need to fix the BS6 diesel fiasco looming over their head, on priority.


In general, what Ford has done was expected. They have road map already created where they want to focus on SUV and trucks. They are discontinuing sedans and small cars. In this road map, their upcoming models are not suitable for Indian market. As they're clear about their road map, they don't want to digress and develop something for India. Let's respect and accept that.

Last edited by ashis89 : 9th September 2021 at 15:26.
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Old 9th September 2021, 15:32   #4
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Default Re: Ford to stop manufacturing cars in India

Unfortunately, this is official.

Ford has stopped manufacturing vehicles for the Indian market. Only exports to continue. Sharing the full press release -

Quote:
FORD RESTRUCTURES INDIA OPERATIONS: PLANS TO GROW FORD BUSINESS SOLUTIONS; SERVE CUSTOMERS WITH ICONIC GLOBAL VEHICLES; CEASE LOCAL VEHICLE MANUFACTURING

Sep 9, 2021 | NEW DELHI
  • Ford plans to significantly expand its 11,000-employee Business Solutions team in India in coming years to support Ford globally; team to focus on engineering, technology, and business operations centres of excellence
  • Ford India will cease manufacturing vehicles for sale in India immediately; manufacturing of vehicles for export will wind down at Sanand vehicle assembly plant by Q4 2021, and Chennai engine and vehicle assembly plants by Q2 2022; Ford will work closely with employees, unions, dealers and suppliers to care for those directly impacted
  • Ford plans to serve customers in India with must-have, iconic vehicles, including Mustang coupe. Customers in India also will benefit longer term from the Company’s plan to invest more than US$30 billion globally to deliver all-new hybrid and fully electric vehicles, such as Mustang Mach-E
  • India will remain home to Ford’s second-largest salaried workforce globally; in addition to Ford Business Solutions, Ford India will continue engine manufacturing for export, as well as full customer support operations with service, aftermarket parts and warranty support
  • Ford India’s restructuring will advance the Ford+ plan for growth and value creation by strengthening automotive operations and capitalizing on unprecedented opportunities in electric and connected vehicles and enhanced customer experiences

NEW DELHI, Sept. 9, 2021 - Ford in India today announced it will restructure its operations with plans to significantly expand its Chennai-based Ford Business Solutions team and bring to market some of Ford’s iconic global vehicles and electrified SUVs while ceasing vehicle manufacturing in India.

Ford will continue to provide customers in India with ongoing parts, service, and warranty support. As part of the plan, Ford India will wind down vehicle assembly in Sanand by the fourth quarter of 2021 and vehicle and engine manufacturing in Chennai by the second quarter of 2022.

Following accumulated operating losses of more than $2 billion over the past 10 years and a $0.8 billion non-operating write-down of assets in 2019, the restructuring is expected to create a sustainably profitable business in India.

Ford will focus on growing its Ford Business Solutions capabilities and team in the country, as well as engineering and engine manufacturing for export. With more than 11,000 team members currently in India, Ford Business Solutions plans to expand to provide more opportunities for software developers, data scientists, R&D engineers, and finance and accounting professionals, in support of the Ford+ plan to transform and modernize Ford globally.

More than 500 employees at the Sanand Engine plant, which produces engines for export for the best-selling Ranger pickup truck, and about 100 employees supporting parts distribution and customer service, also will continue to support Ford’s business in India.

Ford will begin importing and selling must-have, iconic vehicles, including Mustang coupe. Customers in India also will benefit longer term from the Company’s plan to invest more than $30 billion globally to deliver all-new hybrid and fully electric vehicles, such as Mustang Mach-E. Sales of current products such as Figo, Aspire, Freestyle, EcoSport and Endeavour will cease once existing dealer inventories are sold.

Ford will continue full customer support operations for these vehicles with service, aftermarket parts and warranty coverage.

“As part of our Ford+ plan, we are taking difficult but necessary actions to deliver a sustainably profitable business longer-term and allocate our capital to grow and create value in the right areas,” said Jim Farley, Ford Motor Company’s president and CEO. “Despite investing significantly in India, Ford has accumulated more than $2 billion of operating losses over the past 10 years and demand for new vehicles has been much weaker than forecast.

“I want to be clear that Ford will continue taking care of our valued customers in India, working closely with Ford India’s dealers, all of whom have supported the company for a long time. India remains strategically important for us and, thanks to our growing Ford Business Solutions team, will continue to be a large and important employee base for Ford globally.”

Anurag Mehrotra, president and managing director of Ford India, added: “Ford has a long and proud history in India. We are committed to taking care of our customers and working closely with employees, unions, dealers and suppliers to care for those affected by the restructuring.”

Ford India said it took these restructuring actions after investigating several options, including partnerships, platform sharing, contract manufacturing with other OEMs, and the possibility of selling its manufacturing plants, which is still under consideration.

“Despite these efforts, we have not been able to find a sustainable path forward to long-term profitability that includes in-country vehicle manufacturing,” Mehrotra said. “The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s car market.”

Approximately 4,000 employees are expected to be affected by the restructuring. Ford will work closely with employees, unions, suppliers, dealers, government, and other stakeholders in Chennai and Sanand to develop a fair and balanced plan to mitigate the effects of the decision.

Ford India will maintain parts depots in Delhi, Chennai, Mumbai, Sanand and Kolkata and will work closely with its dealer network to restructure and help facilitate their transition from sales and service to parts and service support.

Ford India will maintain a smaller network of suppliers to support engine manufacturing for exports and will work closely with other suppliers to ensure a smooth wind-down of vehicle manufacturing. Ford also will continue to rely on India-based suppliers for parts for its global products, and suppliers and vendors supporting Ford Business Solutions will continue to support the business as normal.

“We are grateful to our dedicated team in India who have undertaken many actions in recent years in an attempt to position the company for profitability and growth,” said Steven Armstrong, transformation officer, South America and India. “Our ability to refocus our presence in India is a result of their building our expertise in low-cost engineering, global engine manufacturing quality and business services.”

In connection with this announcement, Ford currently expects to record pre-tax special item charges of about $2.0 billion, including about $0.6 billion in 2021, about $1.2 billion in 2022 and the balance in subsequent years. Within that total will be about $0.3 billion of non-cash charges, including accelerated depreciation and amortization. The remaining cash charges of about $1.7 billion will be paid primarily in 2022 and are attributable to settlements and other payments.

Last edited by CrAzY dRiVeR : 9th September 2021 at 15:35.
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Old 9th September 2021, 15:34   #5
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Default Re: Ford to stop manufacturing cars in India

Ford India tweet, confirms launch of Mustang Coupe and Mustang Mach-E in India.

Ford to stop manufacturing cars in India-smartselect_20210909153359_twitter.jpg

Ford to stop manufacturing cars in India-20210909_153348.jpg

Sales of current models such as Figo, Aspire, Freestyle, EcoSport and Endeavour will cease once existing dealer inventories are sold.

Link

Last edited by Venkatesh : 9th September 2021 at 15:51.
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Old 9th September 2021, 15:44   #6
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Default Re: Ford to stop manufacturing cars in India

Sad to see them go. We were once happy owners of the first gen Figo (despite our car being a lemon).

I wonder what would happen to the dealers, especially the ones in rural areas.

Surely not a lot of Endeavour/Mustang sales happen in those places. Only 928 factory dispatches happened for the Endeavour last month, according to the August 2021 sales analysis posted elsewhere in this forum.

Similar story with the service centers as well — once the existing 1st owners eventually sell their vehicles, not all of the subsequent owners might go to the authorised service centers, thereby forcing them to shut shop as well.

This concern might drive down any remaining potential sales of the Endeavour and the Mustang.

Last edited by voldemort : 9th September 2021 at 15:47.
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Old 9th September 2021, 15:49   #7
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Default Re: Ford to stop manufacturing cars in India

Sad to see another marquee brand leave the Indian market.

Hope VW, Skoda aren't next, since we have quite a few of their vehicles across the extended family.

Meanwhile, my next vehicle is going to be a Hyundai.
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Old 9th September 2021, 15:50   #8
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Look at the only positive outcome of this - the ugly facelift of Ecosport will not be coming
On a serious note sad to see Ford exit Indian market. I wonder what would be their position, if they had launched their pickup trucks, Mach-E and the F150 Lightning here.
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Old 9th September 2021, 15:53   #9
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Default Re: Ford to stop manufacturing cars in India

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Originally Posted by tj112 View Post
As of now, Ecosport launch still expected to go ahead.
Teaser campaign expected around Sep end/ early Oct, with launch expected around 2nd week of Oct.
Not anymore.

The press release makes it clear that the "sales of current products such as Figo, Aspire, Freestyle, EcoSport and Endeavour will cease once existing dealer inventories are sold".
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Old 9th September 2021, 15:53   #10
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Default Re: Ford to stop manufacturing cars in India

This just in, quoting from Sirish Chandran's IG..
Attached Thumbnails
Ford to stop manufacturing cars in India-img_20210909_155127.jpg  

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Old 9th September 2021, 15:54   #11
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Default Re: Ford to stop manufacturing cars in India

Well, that's unfortunate. We recently purchased a pre-owned 2014 Ecosport. I don't think that any issues with respect to service centre network should arise especially in big cities.

There is one concern though. One of our primary reasons to purchase the Ecosport was low cost to maintain. Does this mean that the service cost could increase in the coming times?

It would be great if anyone can clear it.

Regards,
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Old 9th September 2021, 16:02   #12
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Default Re: Ford to stop manufacturing cars in India

Thank you Ford India for giving us some of the best budget drivers car. My 2012 Fiesta Classic continues to serve us perfectly even after close to a decade of ownership. Ford's service has been excellent wrt service quality, costs and parts availability. Indians will surely miss buying new Ford cars.

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Old 9th September 2021, 16:05   #13
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Guys, Ford USA sells billions of dollars of cars every year. They aren't interested in a distant market where they will merely be importing & selling overpriced CBUs. How many CBUs will they sell? 30 / month? 80? Eventually, Ford will stop that too and just completely exit the Indian car market. It's not a small car dealer to be happy selling CBUs.

A sad day for Indian enthusiasts because Ford gave us some truly fun-to-drive cars. Whether it was the Ford Ikon 1.6, the Fiesta S, the EcoSport, Figo S or the Endeavor 3.2.

Incidentally, in the same month a year ago, another American icon exited India. Harley Davidson! Link to thread (Harley-Davidson exits India!). Brands exiting our market isn't good for consumers at all. Indeed, it is competition that gives us better products & better prices.

Ford, GM, Harley, Fiat (as a brand), MAN Trucks are all gone. VW totally reduced its India commitment, Nissan has been in the ICU till very recently, while Audi has taken Nissan's place in the ICU. We need a market where 10 players have 10% each & fight fiercely everyday, not 2 players having 70%.

A recent, relevant post:
Quote:
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 : 10th September 2021 at 09:15.
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Old 9th September 2021, 16:07   #14
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This is such disheartening news.

As a new Ecosport Owner (Dec 2020), how worried should I be about future service and experiences?

I stay in Hyderabad so I am assuming official after sales service should not be a problem since it is a big city, but should I still be apprehensive about dealer and service center attitude?
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Old 9th September 2021, 16:08   #15
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Default Re: Ford to stop manufacturing cars in India

No!

This was bound to happen but still feel that it should not have happened.
Ford made great cars except the new Figo twins, but then those were very few and outdated.

If we see the pattern and stories behind the companies which left India, this is the common point.

Fiat kept selling Punto twins for over a decade with touch ups here and there.
Punto and Linea were great cars but nothing after that.

Chevrolet launched those Chinese Sail twins and Enjoy, after fantastic Beat, Cruze and (to some extent) Tavera.

and Ford gave us Endy and Ecosport and that's it nothing good after that.

I wish Ford should have given one more try with something like India 2.0 project from VW/Skoda.
But, sadly, reality doesn't always matches your expectation.
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