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Ford Motors to exit Indonesian and Japanese market this year citing low sales

Ford Motors to exit Indonesian and Japanese market this year citing low sales
Nikhil Puthran Nikhil Puthran Wednesday 27 January 2016, 16:09 PM

American automaker Ford has been present across all major global automotive markets. As per a fresh update from sources, the company has been planning on marking its exit from the Indonesian and Japanese car market by the end of this year. As per sources, the reason cited by the company for exit has been stated as failing to find any ‘reasonable path to profitability’ in Indonesian and Japanese markets. This also means that the company would be shutting down its business operations in both the countries.

In terms of numbers last year alone the company sold around 5,000 vehicles in Japan that has only accounted for mere 1.5% share in the new car market. Whereas in Indonesia the company merely sold about 6,000 cars that equates to a mere 0.6% of the market share. Apart from dealerships the company would also stop imports for the Lincoln and Ford vehicles. The product development activity carried out in Japan would also be reportedly moved to a different location.

Ford commenced operations in Japan way back in 1974 and has about 52 dealerships with an employee strength of about 300 people. The company marked its presence in Indonesia way back in 2002 with about 44 dealerships. The carbuyers in the Japanese market have majorly opted for locally produced vehicles from Toyota, Nissan and Honda.

Source: R

 

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