The American car giant Ford is ending its production in India, which will cost it 2 billion dollars.
In an official statement issued Thursday, the company said roughly 4,000 employees would be laid off and production would stop immediately. CEO Jim Furley said the move was “difficult but necessary” for the company to achieve its long-term goals.
“Despite significant investment in India, Ford has generated more than $ 2 billion in operating losses over the past 10 years. Demand for new cars has been weaker than expected,” he was quoted as saying by CNN Business.
The American company’s business in the Asian country has indeed encountered many obstacles over the years. The carmaker started operations there in 1995. In 25 years, it has invested more than $ 2 billion in the country.
In the next few months, the company’s two plants in Senand and Chennai will shut down.
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