Ford Motor to close 2 manufacturing plants in India, sell only imported vehicles: Report

Ford Motor to close 2 manufacturing plants in India, sell only imported vehicles: Report

American automaker Ford Motor Co will close two manufacturing units in India and sell only imported vehicles in the country as part of the restructuring effort. The company has invested about $ 2.5 billion in its Chennai (Tamil Nadu) and Sanand (Gujarat) plants, which will stop selling vehicles such as the EcoSport, Figo and Aspire made at these facilities. In the future, it will exclusively sell foreign vehicles such as the Mustang.

The company is expected to release an official statement soon. For years, Ford has been struggling to make a name for itself in the Indian automotive industry. Ford India has 6,10,000 engines and 4,40,000 cars a year. It has exported models such as the Figo, Aspire and EcoSport to over 70 markets worldwide.

In January this year, Ford Motor Company and Mahindra & Mahindra announced the cancellation of a previously announced automobile joint venture before operating separately in India.

The two organizations marked an arrangement in October 2019 in which it was concluded that Mahindra and Mahindra will purchase a larger part share in an entirely claimed Ford Motor Co (FMC) branch that will assume control over the US automaker's vehicle activities in India. The new business was to deliver and convey Ford brand autos in India and sell both Mahindra and Ford vehicles in high-development arising nations.

Ford is the second American automaker to close operations in India after General Motors. General Motors, which has been trying to establish its name for almost two decades, said in 2017 that it would stop selling automobiles in India as its fortunes did not improve. The company sold its hollow plant in Gujarat to MG Motors, which operated to export the Talegaon plant in Maharashtra, but stopped production there in December.

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