Ford Motor Co. announced late Thursday that it will cease manufacturing vehicles for sale in India immediately, a move that would leave about 4,000 employees jobless.
In a press release, the American company said that its plan to restructure its operations in India came as it intends to “significantly expand its Chennai-based Ford Business Solutions team” and redirect its capital for the development of electric vehicles, as well as investment in technology.
“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,” Ford President and CEO Jim Farley said in a statement. “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,” Farley added.
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