Ford to end manufacturing in India, take $2 billion hit
09 Sep 2021
Ford Motor Co is trading up 0.62% at 13.03
Ford Motor Co will stop manufacturing in India and take a hit of about $2 billion as it does not see a path to profitability in the country, becoming the latest automaker to leave a major growth market dominated by Asian rivals.
The decision by Ford comes after it struggled for years to win over Indian consumers and turn a profit. The carmaker entered India 25 years ago but has a less than 2% share of the passenger vehicles market.
In its statement, Ford said it accumulated operating losses of more than $2 billion in 10 years in India and demand for its new vehicles had been weak.
“Despite (our) efforts, we have not been able to find a sustainable path forward to long-term profitability,” Ford India head Anurag Mehrotra said in the statement.
“The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s car market,” he said.
Ford follows other U.S. carmakers such as General Motors (NYSE:GM) and Harley Davidson which have already left India, a market that had once promised exponential growth. The country is dominated by mainly low-cost cars made by Suzuki Motor Corp and Hyundai Motor.
On technical fronts Ford Motor Co RSI stood at 44.75 and currently stock is trading below all Moving Average. So, SELL position can be taken with following target and stoploss:
TRADE SIGNAL – : Ford Motor Co – SELL: 13.03, TARGET: 12.62, STOP LOSS : 13.44