Ford's India Exit Worries Dealers Of Legal Action From Customers

Ford Motor Co’s F exit from India could see its dealers face potential legal action from customers, Bloomberg News reported on Thursday, citing a dealer association executive. 

What Happened: The Dearborn, Michigan-based automaker has announced plans to shut its factories in India but has not revealed a compensation plan for the dealer partners who have been selling the vehicles in India.

As per Vinkesh Gulati, president of the Federation of Automobile Dealers Associations in India, dealers are likely to face “legal complications” given that the consumer law of the land makes them liable after a manufacturer exits, adding that dealers are expecting a compensation plan.

See Also: Why Harley-Davidson Quit World's Largest Motorcycle Market

Why It Matters: Ford’s exit from India follows rival General Motors Co GM and Harley-Davidson Inc’s HOG exit from the market after making billions of investments over the years and thousands of hirings.   

Price Action: Ford shares closed 1.36% higher at $13.40 on Thursday.

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