Ford Motor to cease production in India, 4,000 jobs to be impacted

'The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India's car market,' says Anurag Mehrotra, MD of Ford India

Ford Motor Co. will shut its car factories in India and record roughly $2 billion in restructuring charges, scaling back significantly in a country that past management saw becoming one of its three biggest markets.

Manufacturing of vehicles for sale in India will stop immediately, and about 4,000 employees will be affected, the carmaker said in a statement Thursday. Ford will wind down an assembly plant in Gujarat by the fourth quarter, as well as vehicle and engine manufacturing plants in Chennai by the second quarter of next year.

“The decision was reinforced by years of accumulated losses, persistent industry