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This article is more than 2 month old.

Auto dealers association seeks govt help in wake of Ford exit

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Ford’s departure will impact its 170-plus dealers, spread over 391 outlets in the country. Around 4,000 employees and another 40,000 are employed with the dealerships and service facilities.

Auto dealers association seeks govt help in wake of Ford exit
An auto dealers’ group has written to the Centre requesting intervention following Ford Motors' departure from the country. The Federation of Auto Dealers Association (FADA) wrote to the Minister for Heavy Industries and Public Enterprises, Mahendra Nath Pandey, seeking support in wake of Ford's exit.
Ford's decision to quit India follows years of losses and dwindling sales. The US auto giant took the decision to close its plants in India due to unviable business conditions. The company had recorded 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 alone.
The legendary carmaker announced that it would shut down its manufacturing facilities in Chennai and Sanand, thus closing the production chapter in India. Ford will wind down vehicle assembly in Sanand by the fourth quarter of 2021 and vehicle and engine manufacturing in Chennai by the second quarter of 2022, according to a company statement.
The company is expected to keep a small workforce for CBU and CKU units in India.
Workers and dealers have been left in the lurch after the decision.
Ford’s decision has cast a shadow on its 170-plus dealers, spread over 391 outlets across the country. Around 4,000 employees and another 40,000 employed with the dealerships and service facilities will be affected by the restructuring. The dealers currently have 1,000 cars in their inventory along with hundreds of demo or test drive cars.
FADA has sought the minister’s help in protecting the interests of Ford dealers and their employees. The association has asked for the creation of a task force which will take day-to-day updates from Ford India to monitor the compensation plan for automobile dealers and dealership employees.
The dealers’ association has also asked the government to instruct Ford India to keep FADA in the loop regarding dealership-related issues and compensation structure.
FADA also wants the government to make sure that Ford India indemnifies dealers from various consumer and civil cases, both pending ones as well as against any future cases that may arise directly or indirectly out of Ford’s restructuring announcement.
The group also wants to initiate a formal discussion on the Automobile Dealers’ Protection Act and its importance in protecting small and medium enterprises, therefore the interests of their employees and customers.
FADA said it has already received assurances from the ministry that its requests will be considered.
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