India Auto Dealers Seek Help from Government after Ford Exit Setback
India’s top auto dealers group have made requests to the Indian government to draft rules to safeguard their interest when global automakers such as ford, which have recently made a decision to exit the Indian market.
India's top auto dealers group have made requests to the Indian government to draft rules to safeguard their interest when global automakers such as ford, which have recently made a decision to exit the Indian market
Ford, a U.S Company has stated that, it would stop making cars in the nation and it would end its over two decade's long presence. It took nearing to $2 billion hit and it has stated that, it is not able to view any profitability path, but when it comes to the auto dealers group, they have stated that, the company has been left the dealers in the lurch.
The Federation of Automobile Dealers Association (FADA) have said, in the letter addressed to India's industries ministry, that sudden exit by global company would definitely cause great distress.
India's industries ministry could not be reached for their comment outside regular business hours.
We have a plan that, would ensure continued viable business for our dealer partners, Ford has stated in its statement, adding that, it is working along with them in order to support its existing customers.
We are very confident that Ford company would conduct the discussion with utmost trust as well as transparency stated Rajesh Shah, President of Ford's dealer council.
Ford is the 5th automaker, which would stop manufacturing in India, since 2017, following the exit by General Motors (GMN) and Harley Davidson.
The FADA letter has asked the ministry to draw a law, in order to safeguard the dealers as well as customer's interest in India.
The group has also called for legislation that would ensure adequate information, which is available to customers as well as dealers about unfair termination of dealership agreements.
Dealers have invested nearing to 24.85 billion rupees ($337 million) in retail outlets of the 5 brands whose exit has lead to loss nearing to 64,000 jobs, FADA stated.