The news from Ford doesn’t stop, but this time, unlike the first one today, things are very bad. In India, the American automaker definitely did as in Brazil, threw in the towel and will close all four factories in the Asian country.
There, 4,000 employees will lose their jobs and the bill has not yet been made for compensation, but Ford was coming from an accumulated loss of US$ 2 billion or R$ 10.5 billion in 10 years.
Well, around here, you know the value was much higher, don’t you? In a decade, Ford “burned” R$ 61 billion. But back in India, the automaker didn’t find its way through the mistakes.
With only 2% of the local market and present for a little over 25 years – quite different from the secular presence in Brazil – Ford opened its mouth by not finding the desired profitability.
Anurag Mehrotra, CEO of Ford India, said: “Despite (our) efforts, we have not been able to find a sustainable path to long-term profitability.”
He added: “The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s auto market.”
In a price-sensitive market, where costs need to be as low as possible, Ford has not only failed to adapt, but has seen competition grow too much since the second-generation EcoSport arrived there.
Even with Figo and Aspire, our Ka and Ka Sedans, the automaker leaked money in front of competitors that adapted more quickly, especially Maruti-Suzuki and Tata Motors, but was also blinded by the segment below 4 meters.
Unlike it, Hyundai, Kia, Renault and Nissan, for example, explored more the upper segments, which have better margins instead of focusing the fire on this market segment. The first one found its way and now measures forces with the Indo-Japanese Maruti.
There, Ford sought to partner with Mahindra, but that seemed too late for Dearborn, who canceled the deal and decided to move forward, but with the local market having two feet behind the company.
Anyway, there was no other way… In fact, in time, the Argentines will lose the Indian EcoSport, so they may receive the Romanian one, if the model continues to be made in Craiova.