Ford Motor Company Bids Goodbye to India

Case Code: BSTR637
Case Length: 9 Pages
Period: 2010- 2021
Pub Date: 2022
Teaching Note: Available

Price: Rs.300
Organization : Ford India
Industry : Automotive
Countries : India
Themes: Business Failure

Abstract Case Intro 1 Case Intro 2 Excerpts

Introduction

In October 2021, Ford Motor Company (Ford), the second largest automaker in the US, announced that it was infusing Rs. 50 billion into its Indian unit – Ford India Private Limited (Ford India) – to enable it to make unpaid payments to dealers and distributors and offer a separation package to employees. The injection of fund happened in two parts – Rs. 21.75 billion in September 2021 and another Rs. 29 billion in October 2021. Ford India also committed to bearing its US$ 2 billion pre-tax special item costs, out of which around US$ 1.7 billion would be paid in the year 2022..

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