Yet another auto company leave India 64000 jobs lost since 2017

pSince 2017 64000 jobs in the country has been wiped out and has costed a dealer investment loss of Rs 2485 crore FADA has statedppIn the letter addressed to Heavy Industries Minister Mahendra Nath Pandey the auto federation said After General Motors in 2017 MAN Trucks in 2018 UM United Motors Lohia in 2019 Harley Davidson in 2020 and multiple fly by night Electric Vehicle Players Ford India is the 5th biggest exit from Indian markets since 2017ppFADA also mentioned that the exits affected around 464 auto dealerships in the countryppSudden exits by these multi-national companies MNCs cause great distress to the entire auto retail industry and hamper both the entrepreneurs zeal to do business and the customers interests by leaving the customers high and dry with no proper after sales support This not only tarnishes the dealers name in the society as the dealers are the face of the brand but also tarnishes Brand Indias value Crores of rupees go down the drain as it kills an entrepreneurs vision to get into business again Vinkesh Gulati President FADA saidppI would request that your Ministry work on protection of auto dealers rights possibly through a legislation as suggested by Parliamentary Committee on Commerce and Industry in Report No303 and create a sense of equilibrium in the industry as an increasing number of international players are entering the Indian auto market Mr Gulato addedppFADA in letter dated September 21 also mentioned Auto dealerships turnovers range fromnbspnbsp5 crore and upwards with majority of dealerships being family owned small mid-sized businesses partnership firms operating in every corner of the country A dealer invests his entire savings to get into auto trade business with a long-term investment plan but the dealership agreements to effectuate this business only happen on a yearly basisppAccording to the federation Ford India — the latest one to exit Indias market — is forcing its dealers to first sign non-disclosure agreement NDA before any compensation package is worked out Many Ford dealers have directly or indirectly requested FADA to take up the matter for amicable resolution it addedppOn reading the agreement it was found that the definition of Confidential Information is extremely broad and does not explicitly mention the scope of the discussions that Ford intends to undertake with the Dealers It is unclear if the discussions would include damages towards costs of idle establishment infrastructure maintenance employee retrenchment claims and damages towards loss of opportunity and restrictions in availing dealerships of new OEM original equipment manufacturer in the existing infrastructure FADA claimedppDamages arising out of a nature of business imposed stopping of sales continuation of parts and service damages owing to loss of reputation and re-establishing customer base are some of the other concerns raised in the letterppAfter operating for 25 years in India American auto major Ford Motor Co has decided to pull the plug on local manufacturing The US automaker said that it would take a hit of about 2 billion as it does not see a path to profitability in IndiappFord India will wind down operations at its plant in Sanand in Gujarat by the fourth quarter Q4 of 2021 and vehicle and engine manufacturing in its Chennai plant by 2022p