Ford Announces Major Restructuring Plan for India Operations

Ford in India has announced a major restructuring of its operations with plans to expand its Chennai-based Ford Business Solutions team, cease vehicle manufacturing and bring to market some of the automaker’s iconic global vehicles and electrified SUVs.

While continuing to provide customers in India with ongoing parts, service and warranty support, Ford India will wind down vehicle assembly in Sanand by 4Q this year and vehicle and engine manufacturing in Chennai by 2Q 2022.

With more than 11,000 Ford India employees, Ford Business Solutions expansion plans are expected to provide more opportunities for software developers, data scientists, R&D engineers, and finance and accounting professionals.

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 India’s restructuring also includes a plan to invest more than $30 billion globally to deliver all-new hybrid and fully electric vehicles. Sales of Figo, Aspire, Freestyle, EcoSport and Endeavour will cease once existing dealer inventories are sold. Full customer support will continue for these vehicles with service, aftermarket parts and warranty coverage.

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.

“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.

Ford India will maintain parts and service support  depots in Delhi, Chennai, Mumbai, Sanand and Kolkata.

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.