India's top auto dealers’ group has
asked the Indian government to draft rules to safeguard their interests when
global automakers decide to leave the market as Ford has said it will do.
The U.S. company this month said it will stop making cars
in the country and end its over two-decades long presence. It took a $2 billion
hit and said it does not see a path to profitability, but the auto dealers
group said this has left dealers in the lurch.
The Federation of Automobile
Dealers Association (FADA) said in a letter to India's industries ministry, sudden
exits by global companies "cause great distress."
Ford said in a statement that they have a plan that ensures
continued viable business for the dealer partners, adding that it is also
working with them to support existing customers.
Ford is the fifth major automaker to cease manufacturing
in India since 2017, following exits by General Motors and Harley Davidson.
FADA's letter asked the ministry to draft a law to "safeguard the dealers'
and customers' interests in India." The group also called for legislation
that would ensure adequate information is available to customers and dealers
about unfair termination of dealership agreements.
Dealers invested about $337
million in retail outlets of the five brands whose exit has led to a loss of
about 64,000 jobs, FADA
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