New Delhi. The Federation of Automotive Dealers Association (FADA) has urged the government to enact a dealers protection law. So that the arbitrariness of auto companies can be stopped. Actually FADA has made this demand at such a time. When American automaker Ford has decided to wind up its business in India and stop production at both its manufacturing plants in Sanand and Chennai. If Ford leaves India, it will have a direct impact on about 350 dealers along with 4 thousand employees of Ford.
Apart from this, only 5 months ago, Ford has created new dealers in the country. Who has invested crores of rupees in taking the agency of Ford. Let us tell you that at present, Ford has 170 dealers and about 391 outlets across the country. Who has invested about 2 thousand crores. In such a situation, FADA has demanded to make a dealer protection law to protect such dealers.
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The President of FADA said this thing – FADA President Vinkesh Gulati said that Ford India dealers currently have around 1,000 vehicles worth Rs 150 crore through inventory funding from reputed banks. Dealers also have demo vehicles which are around 100 in number. Apart from this, the company had also hired several dealers till five months back. Such dealers will be in biggest financial loss in their entire life.
So far 5 companies have closed business in India – Gulati informed that after General Motors, MAN Trucks, Harley Davidson, UM Lohia and multiple fly by night electric vehicle players, Ford India is the fifth largest company to move from Indian markets since 2017.
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US auto major Ford Motor Company announced on Thursday that it will stop manufacturing vehicles at two of its plants in the country and sell only imported vehicles as part of a restructuring exercise. However, it will continue to manufacture engines from its Sanand plant which will be exported to the company’s global operations.
This will affect Ford’s customers – With the closure of vehicle manufacturing operations, the automaker will stop selling vehicles such as the EcoSport, Figo, Endeavor, Freestyle and Aspire, which were manufactured at its plants. Ford said it will maintain parts depots in Delhi, Chennai, Mumbai, Sanand and Kolkata and work closely with its dealer network to facilitate sales, part service and service support. The company said that it will continue to provide full customer support for these vehicles including servicing, aftermarket parts and warranty coverage.
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