Restructuring plan: Ford India talks up compensation with dealer partners

Ford on 22 September 2021 met its principal dealers to work out a compensation formula as it prepares to exit India's automobile market as part of a restructuring it announced on 9th September 2021. The Company's 170 dealers signed a non-disclosure agreement – a precondition set by the company to start negotiations.

As part of the restructuring plan, Ford will cease production of cars and sport utility vehicles at its plants and will sell vehicles only till stocks last.

Ford India’s revenue from operations will crimp to less than a fourth of its 2020-21 (FY21) tally, with the announced closure of its automotive operations, according to India Ratings & Research. Ford India’s 2021-22 revenue is expected to be Rs 2,000-3,000 crore, a sharp fall from Rs 13,516 crore in FY21, said the rating firm in a recent report.

Source: Business Standard