Ford closing down India plants, ending EcoSport production

(September 14, 2021) Ford said it will stop manufacturing cars in India and will shut down its plants in the country, becoming the latest automaker to quit a market still dominated by Asian rivals. The automaker said it will close the Sanand assembly plant by the end of this year and will cease production at the Chennai engine and assembly plants by the end of June 2022.

The company said the decision followed more than $2 billion in operating losses in India over the last 10 years along with a an asset write-down of $800 million in 2019. About 4,000 employees will be affected by the restructuring, Ford said."Ford will work closely with employees, unions, dealers and suppliers to care for those directly impacted," the company said in a statement.
The restructuring is expected to trigger pretax special charges of about $2 billion, Ford said, including about $600 million in 2021, about $1.2 billion in 2022 and the balance in later years.

Ford also said the EcoSport compact crossover will be discontinued in North America once the India production ceases next year. “With Ford India’s restructuring announcement, the Ford EcoSport will now be sold in North America only through the second half of 2022," the company said in an e-mailed statement. "After that, we will continue to serve EcoSport customers with parts, service and warranty support."

Ford said about $300 million of the $2 billion will be non-cash charges, including accelerated depreciation and amortization.

Sources: Ford, Automotive News