After learning Ford India’s decision to stop its manufacturing of vehicles for sale in India, the automobile retail body Federation of Automobile Dealers Association (FADA) appealed to the government to roll out Franchisee Protection Act in order to protect the dealer community.
Commenting on Ford’s exit from India, FADA president, Vinkesh Gulati said, “FADA has been requesting the government to bring out Franchisee Protection Act for a long. Due to unavailability of the act, Auto Dealers in India are not adequately compensated like other countries, Brazil, Russia, Mexico, Indonesia, China, Italy, Sweden, where this type of law exists for safeguarding Dealers interests”.
After General Motors, Harley Davidson, UM Lohia, Man Trucks, Ford will be the fifth automobile manufacturing company to bid due. Ford’s exit plan from India has astonished the automobile sector of the country. After serving three decades to the Indian car lovers, the US auto major Ford Motor Co in a jolting statement said that it has decided to wrap up and stop its manufacturing of cars with immediate effect.
The company which invested about $2.5 billion at its Chennai and Gujarat plants has accumulated an operating loss of around $2 billion in India for the last 10 years. With the shutting down of vehicle manufacturing, the carmaker will stop selling vehicles such as EcoSport, Figo, Freestyle, Aspire, and Endeavour. The shutdown of manufacturing units will impact the job loss of over 4,000 employees and affect 150 dealer principals.