Ford Motor Company will cease production at two plants in India, bringing an end to a long and costly effort to establish a presence in one of the world’s largest emerging auto markets.
The company announced on Thursday that it will cease production at a plant in Sanand, western India, this month, and that it will cease production of vehicles and engines in Chennai, southern India, next year.
Ford has lost more than $2 billion in India over the last ten years, according to the company’s CEO, Jim Farley, in a statement. “We are taking difficult but necessary steps to deliver a more sustainably profitable business in the long term, and we are allocating our capital to grow and create value in the right areas.”
Other major automakers have struggled to establish a presence in India, where people prefer smaller, more affordable vehicles than in the United States and Europe. In 2017, General Motors stopped selling cars in the country. Maruti Suzuki, in which Suzuki of Japan owns a majority stake, manufactures roughly half of all new cars sold in India.
Ford’s exit from India is the latest step in the company’s efforts to reduce losses from its international operations. The company announced in January that it would close three plants in Brazil. Previously, it had closed several plants and laid off thousands of workers in Europe.
Separately, Ford announced Thursday that it will close a truck plant near Kansas City, Mo., the following week due to a global shortage of computer chips. The plant, which produces the F-150 pickup truck and the Transit van, is set to reopen on September 20. G.M. also announced that several of its idled North American plants, including those in Ft. Wayne, Indiana, and Silao, Mexico, will resume production next week.