The American automaker Ford will stop producing vehicles in India, he said on Thursday, saying he had not been able to find
"a sustainable path"
in the matter, a decision which will result in two billion dollars in costs. restructuring.
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The announcement is yet another blow to Indian Prime Minister Narendra Modi, who wants to encourage foreign manufacturers to produce in the country, as General Motors left the country in 2017, followed last year by Harley-Davidson.
According to Ford, its operations in India have accumulated a loss of more than two billion dollars in 10 years, to which is added an asset depreciation of 800 million dollars in 2019.
“We have not been able to find a sustainable path to long-term profitability through the manufacture of vehicles in this market, ”
said Ford India CEO Anurag Mehrotra in a statement.
High restructuring costs
The press release specifies that the group anticipates restructuring costs of around two billion dollars, including 600 million in 2021, 1.2 billion next year and the rest in the following years.
The production of vehicles is immediate for those destined for the local market, its plant in Sanand (west) continuing to operate for exports until the end of next year.
Its engine assembly and manufacturing plants in Chennai (south-east) will close in the second quarter of 2022. Nearly 4,000 employees will be affected, said the manufacturer.
