Ford Motor is ending vehicle production in India, shutting down its two large plants there and terminating thousands of employees, as CEO Jim Farley restructures the automaker’s operations as part of a turnaround plan, Report informs referring to CNBC.
The company said that the actions will cost about $2 billion, including special pretax charges of about $600 million in 2021 and $1.2 billion in 2022. About $300 million of the $2 billion will be non-cash charges, including accelerated depreciation and amortization, according to the company.
About 4,000 people will lose their jobs due to the plans, according to the company. Ford said it will maintain a small production footprint in India, with plans to expand its large salaried employee base of more than 11,000 people in the country.
The automaker said the decision to close the plants was made after more than $2 billion in operating losses in India over the last decade.