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
Excerpts
Ford in India
In 1953, Ford Motor Company tried to enter the India market, but the strict import restrictions posed a barrier to its entry. Finally, in October1995, the company entered India through a 50-50 joint venture with Mahindra and Mahindra (M&M) and commenced its operations as Mahindra Ford India Limited (MFIL)..
What went wrong?
Ford India tried to establish a significant presence in the Indian automobile market by launching different models of cars, but the variety of products launched by its competitors at frequent intervals affected the sales of the company..
Ford’s Restructuring Plans
In order to cover up its losses, Ford India tried to do platform sharing and contract manufacturing with other original equipment manufacturers (OEM) . It also attempted to sell its manufacturing plants. But it did not succeed in either. Eventually, the company decided to adopt restructuring . Anurag Mehrotra, President and Managing Director, Ford India..
Experts’view
According to Industry experts, wrong product positioning and making a huge investment in the Sanad, Gujarat plants without making full capacity utilization of its first plant, i.e. the Chennai plant, was one of the reasons for Ford’s India exit. V.G.Ramakrishnan, Managing Partner, Avanteum Advisors..
Impact of Exit
Ford India had been operating in the Indian automobile market for more than two decades, so the exit decision of the company was expected to have a significant impact on its more than 4000 employees and dealers and a significant number of customers’..
Road Ahead
Ford India had developed a balanced plan by taking the learnings from its past experiences. According to the plan, the company would continue manufacturing its Ranger models at the engine plant in Sanand and offer support to more than 600 employees engaged in the production of engines, distribution of parts, and customer service..
Exhibits
Exhibit I: Ford India Models
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