Ford to exit Japan and Indonesia this year

According to Reuters, an internal mail has been sent out to the Ford employees of Indonesia and Japan by Asia Pacific President Dave Schoch, informing them that the company will exit all areas of business in those markets. The mail reportedly says that there is “no reasonable path to profitability” in the two markets where the American automaker has been struggling.

The dealerships will be shuttered in addition to discontinuation of sales and import of Ford and Lincoln vehicles. The product development activity in Japan would be shifted elsewhere. The mail also states:

Unfortunately, this also means that our team members based in Japan and Indonesia will no longer work for Ford Japan or Ford Indonesia following the closures.

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Lack of local manufacturing puts Ford at a serious disadvantage in Indonesia. (Image: India-spec Endeavour).

The company¬†entered Japan in 1974 and it presently has 52 dealerships with a total work force of 292 people. In 2015, the automaker managed to sell only around 5,000 units in the market which accounted for a share of 1.5% in the country’s imported new car market.

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In Indonesia, the company commenced its operations in 2002 and currently has 35 people on its payroll. Ford Indonesia sold around 6,000 vehicle last year through its 44 franchised dealerships with a meager market share of 0.6% in the new car market. Ford’s exit from Indonesia comes after compatriot GM announced shuttering of its Indonesian plant. The competition from Japanese automakers proved to be too intense to cut through.

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