As reported, Ford India is now on cost-cutting measures and expects no product to launch in recent times. In the cost-cutting measure, one of the ways is by not providing any increment to the employees of the company this year. The company usually gives two increments to the company’s employees in October and March. This time, the employees will not get any increment in October.
Further, Ford India is also shifting from a plush corporate and spacious office in Cyber City, Gurgaon to another place in the same city.
The report also shows that many of the employees from the office will be shifted to Chennai location. This measure started in 2016 and helped the company to save approximately 37% as compared to 2015. It continued till 2017 which saved 9% than 2016. The year 2018 will also see the increasing cost-cutting measure. The company has reduced the hiring process as well although many prime posts are vacant now.
Despite being in the country for 20 years, it has managed to fix a marginal share in the Indian domestic market. Waning profits also suggest that there will be no new launch in India by 2020.
Ford India is lacking in domestic sales, but its export business is performing well and accounting for 65% of the company profits.
All plans to launch new products in India are on hold and the company is working on the facelifts of the existing model and upgrade the model with as per the BS VI emission norms which will reach the country by 2020. Facelifts of the Aspire and Ford Figo hatchback are planned for introduction in the country in festive season along with the Endeavour facelift to introduce in 2019.
Ford India is working with Mahindra on the new SUV which is based on the new-gen XUV500 and it will be the first vehicle from the Mahindra-Ford joint venture which is also expected to launch around 2020.