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12-09-2021, 11:22 AM
As Ford takes the exit route from India, dealers urge govt to step in
Written by Arun Janardhanan , Saurabh Kapoor | Chennai, New Delhi |
Updated: September 12, 2021 7:41:14 am
Days after Ford announced its decision to stop operations in India, employees and dealers of the company have decided to challenge the plan for a complete shutdown.
Leaving only ‘Ford Business Solutions’ operational in the country, Ford India’s decision to cease manufacturing vehicles for sale in India immediately will affect thousands of employees directly and hundreds of others in related sectors, they said.
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Gulati said Ford India has promised to adequately compensate dealers who continue their services for vehicle owners. “But that promise is not going to compensate for the huge investments made by dealers. Ideally, the government should step in and ensure that the company continues their services for a deserving period, as they are still selling their vehicles in India,” Gulati said.
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He said: “All developed markets have a Franchise Protection Act. Once this Act is there, companies can’t abruptly exit. They have to give sufficient time and suitable compensation. Dealership agreements then will have a long-term vision. It takes around Rs 5-6 crore to set up a Ford dealership in India. There is specific Ford-related hardware and infrastructure that is of no use once you are not associated with the brand. Dealers are SMEs and family-run partnerships, and this will be the biggest loss in their entrepreneurial career. Ford has 4,000 employees, the dealers have 40,000 employees…”
https://indianexpress.com/article/india/...n-7503427/
Written by Arun Janardhanan , Saurabh Kapoor | Chennai, New Delhi |
Updated: September 12, 2021 7:41:14 am
Days after Ford announced its decision to stop operations in India, employees and dealers of the company have decided to challenge the plan for a complete shutdown.
Leaving only ‘Ford Business Solutions’ operational in the country, Ford India’s decision to cease manufacturing vehicles for sale in India immediately will affect thousands of employees directly and hundreds of others in related sectors, they said.
......
Gulati said Ford India has promised to adequately compensate dealers who continue their services for vehicle owners. “But that promise is not going to compensate for the huge investments made by dealers. Ideally, the government should step in and ensure that the company continues their services for a deserving period, as they are still selling their vehicles in India,” Gulati said.
......
He said: “All developed markets have a Franchise Protection Act. Once this Act is there, companies can’t abruptly exit. They have to give sufficient time and suitable compensation. Dealership agreements then will have a long-term vision. It takes around Rs 5-6 crore to set up a Ford dealership in India. There is specific Ford-related hardware and infrastructure that is of no use once you are not associated with the brand. Dealers are SMEs and family-run partnerships, and this will be the biggest loss in their entrepreneurial career. Ford has 4,000 employees, the dealers have 40,000 employees…”
https://indianexpress.com/article/india/...n-7503427/
