Ford India to shut down, 4,800 employees face uncertain future

By Venkatachari Jagannathan

Chennai, Sep 9 (IANS): American automotive major Ford Motor Company has decided to close down its two car plants, in Chennai and Sanand, owned by its subsidiary Ford India Private Ltd, resulting in an uncertain future for about 4,800 employees - workers and staff, said a Union official.

"The company has decided to close down its two Indian plants. The management has not spoken to us about our future. Maybe on Monday, the officials will hold talks with us," a union official, speaking on condition of anonymity, told IANS.

According to him, Ford India's Chennai plant has about 2,700 associates (permanent workers) and about 600 staff while in Sanand, the number of workers will be about 1,500.

The union official said Ford India will continue with engine manufacturing at Sanand for exports.

In statement issued on Thursday, Ford India said it 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.

The company said it had 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.

As to the future of the two plants - whether it would be sold or leased to some other company, an official told IANS that discussions are going on with other automotive players but a final outcome is not known.

The Tamil Nadu government attracted Ford India decades back with attractive tax incentives which became a trend across the country.

(Venkatachari Jagannathan can be contacted at



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Comment on this article

  • Sandy, Udupi

    Sat, Sep 11 2021

    Sad to see Ford go. Some of the cars that they made like the Ikon, Fiesta, Figo were wonderful driver oriented cars that were also not expensive like the big Germans. Figo onwards, they were cheap to maintain and were much much more safer than the tincan Maruti. Unfortunately, the Indian consumer is not favourable to Ford.

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  • Rajan, Mangalore

    Thu, Sep 09 2021

    American auto majors ford ..Chrysler ..General Motors have strangely failed in India ... Possibly not suited for indian roads .. road humps .. low clearances .. Chasis .. not being aspirational ..Frequent service issues and not well networked and cost of spares Other. Is Indian market requirements resale price Second hand market ..... for Maruti .. Hyundai .. THE BIG 2 ...apart from. Meeting all above ..most important quality standards Price points .. second hand market ..

    DisAgree [1] Agree [2] Reply Report Abuse

  • j.anata, Mangaluru / Bengaluru

    Thu, Sep 09 2021

    Sad to see commentators unable to see any economic sense in Ford closing down operations due to its own financial mismanagement and inability to face competition, however they're venting ire and frustrations on Central Govt and abusing Modi as usual.

    DisAgree [4] Agree [1] Reply Report Abuse

  • Veer, Nagpur

    Thu, Sep 09 2021

    Govt itself is bankrupt by its cock eyed economic policies. Reason for price hike on all commodities is govt is borrowing money which drives rupee low. Trap set by govt for opposition parties by demonitisation, GST and digital transactions is back firing on the govt itself. Operation Kamala and EVMs are becoming very expensive for govt to overthrow elected govt or win elections.

    DisAgree [6] Agree [13] Reply Report Abuse

  • Joel, Mangalore

    Thu, Sep 09 2021

    First General motors and now Ford, but government is busy vowing tesla now which also will file for loss and leave in future. This is the reason why companies are scared to have a production plant here. Hopefully the government does something about it

    DisAgree [5] Agree [8] Reply Report Abuse

  • Pinky, Shirva

    Thu, Sep 09 2021

    Ford is an American company and seeing the Indian current & future conditions. Probability are very high that to win next election for BJP might go for a war and bring devastation in country.

    DisAgree [7] Agree [13] Reply Report Abuse

  • Gurudath, M'lore/Mumbai

    Thu, Sep 09 2021

    Utter nonsense. Two major players MG Hector and Kia have entered. Those who can't handle competition will go.

    DisAgree [10] Agree [7] Reply Report Abuse

  • Daniel, Mangalore

    Thu, Sep 09 2021

    Stop blaming the govt for each and everything. The companys R

    DisAgree [8] Agree [7] Reply Report Abuse

  • Nice, Mangalore

    Thu, Sep 09 2021

    You right Daniel, But the plight of people who lost jobs is sad................. And by the way i guess the same concept must also be applied to the current regime who keeps on blaming the previous regimes.

    DisAgree [1] Agree [3] Reply Report Abuse

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