Ford slamming brake on India production real shock for us: FADA

As Ford announced its decision to shut down its production units in India, the company is set to begin discussions with labour unions today over the rehabilitation and compensation measures to be undertaken for workers at its units. Vinkesh Gulati, President of the Federation of Automobile Dealers Associations (FADA) shared his views.

Ford plant closure: Chennai labour union to meet management today, discuss compensation

“It is a real shock for us. All put together there are some 170 dealers with some 300 plus outlets around 40,000 manpower. It is a big thing for us and the dealers. If we go ahead with the dealer shutdown also, it will directly affect the manpower,” he said.

“Running selling dealership, maintaining service is a different scenario whereas now as there are no new products to sell, running a service will always be unviable and dealers will have to shut shop or reduce the manpower. So out of 40,000 most of the manpower has to go through the job loss,” he added.

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According to him, with the current situation where the country is just coming out of COVID, this will be another blow to the industry today.

“As near as five months back, Ford has appointed two new dealers, a fresh new investment. As near as last month, a dealer has opened a new outlet, so obviously they cannot compensate the opportunity that we have lost but we will be in discussion with Ford, as an association and our dealers also to see how can we mitigate the loss that we are going through,” he stated.

Also Read: Ford’s overnight exit leaves dealers in lurch, many fear huge losses

FADA is trying to discuss with the Ministry of Heavy Industries to pitch in and find out an amicable solution where the dealers don’t go through a negative investment base.

“We have seen five major exits in just two three years. As of today, there are regulation issues if you want to set up a shop but there are no regulations if you want to shut the shop. It is a bigger problem for the customers,” Gulati shared.