Indian Journal of Industrial Relations: Economics & Social Dev.

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Ford Debacle Derails ‘Make in India’ Plans: Socio Economic Impacts


Affiliations
1 VIT Business School, Chennai., India
     

   Subscribe/Renew Journal


Ford India operations ended up losing roughly two billion dollars due to lack of demand and sales. The pandemic has placed the company on the back foot, unprecedented failures and affecting the livelihoods of employees. The shutdown of the company’s Indian wing will reduce up to 4,000 factory jobs, with over 2,600 regular employees and around 1,000 contract workers. The shutdown will also affect auxiliary companies that sell minor components and parts to Ford. Data were collected from workers, union leaders, union members, dealers, customers, and management to understand the issues faced by Ford. Indian operations were typically marginal and vulnerable to significant economic shifts; export was a face-saver. The study attempts to present the impact of the closure on the socio-economic conditions of workers.

Keywords

No Keywords
Subscription Login to verify subscription
User
Notifications
Font Size


  • Autopunditz.com (2021), Indian Cars Exports Statistics – April 2020 to January 2021, https://www.autopunditz.com/post/indian-cars- exports-statistics-april-2020-to-january-2021, downloaded on 15-11-2021

  • Bakshi P.M.(2020), The Constitution of India, Fundamental Rights and Directive Principles of State Policy, Lexis Nexis, 15th Edition, ISBN- 978-81-3126-238-2, Pages 14-128

  • Bloomberg (2019), “Ford Will Close Six European Plants as Part of Global Downsizing”, Industrial Week, https://www.industry week.com/leadership/article/22027835/ ford-will-close-six-european-plants-as-part- of-global-downsizing. Downloaded on 15-11-2021

  • Business Standard (2020), “Trade Union Strike: HMSI, Bajaj Auto, Component Makers Affected,” https://www.business-standard.com/article/pti-stories/trade-union-strike-hmsi-bajaj-auto-component-makers-affected-120010801232_1.html downloaded on 15-11-2021

  • Business standard (2021), “Ford Employees Stage Protest, Demand Tamil Nadu govt’s Intervention,” https://www.business-standard.com/article/automobile/ford-employees-stage-protest-demand-tamil-nadu-govt-s-intervention-121091401225_1.html, Downloaded on 2-10-2021

  • Business Strategic Hub (2021), “SWOT Analysis of Ford India”, https:///swot-analysis-of-ford-2019-ford-swot-analysis/, Downloaded on 2-10-2021

  • Business Today (2021), 5 Auto Companies Shut Shop in India in Last 5 Years”, https:// www.businesstoday.in/latest/economypolitics/ story/5-auto-companies-shutshop-in-india-in-last -5-years-287151- 2021-02-10, Downloaded on 18-11-2021

  • Cardekho ( 2021), “Price Comparison”, https:// www.cardekho.com/newcars, Downloaded on 1-12-2021

  • Economic Times (2021), “Toyota Withdraws Lockout at Bidadi Plants, Starts Second Shift production”, https://economictimes. indiatimes.com/industry/auto/cars-uvs/ toyota-withdraws-lockout-at-bidadi-plants-starts-second-shift production/articleshow/80228793.cms, Downloaded on 1-12-2021

  • en.wikipedia.org,(2021),”FordIndia,Export”, https://en.wikipedia.org/wiki/Ford_India#Exports

  • FIC (2021), “Auto Industry Against Inclusion in India-European Union Free Trade Agreement”, http://foundryinfoindia.org/ Auto%20industry%20against%20inclusion% 20in%20IndiaEuropean%20Union%20free% 20trade% 20agreement.aspx, Downloaded on 20-11-2021

  • Firstspot (2012), “Labor Unrest in Ford India”, https: //www.firstpost.com/fwire/fordindia-faces-labour-unrest-257576.html, Downloaded on 10-11-2021

  • Ford (2021), “About Ford” https:// www.india.ford.com/ Downloaded on 15- 11-2021

  • Ford Annual Report (2021), https:// annualreport.stocklight.com/NYSE/F/ 21592712.pdf, Downloaded on 10-11-2021

  • Hindu Business line (2018), “Ford India Workers Protest Dismissal,” https://www.thehindubusinessline.com/companies/ford-india-workers-protest-dismissal/ article20414014.ece1, Downloaded on 15-11-2021

  • Hollenbarch K. (2012), “The Human Side of Retrenchment”, Cobalt Solutions for Business Owners Working paper, retrieved August 15, 2012, from http://southafrica.smetool kit.org/sa/5917/the-human-side-ofretren chments.

  • Ibef.org (2021), “Indian Automobile Industry Report”, https://www.ibef.org/industry/india-automobiles.aspx, Downloaded on 25-10-2021

  • ILO (2021), C087 - Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87), Conventions and Recommendations on Social Security, Promotion and Protection against Unemployment, 1988 ( No 168),http://www.ilo.org/ global/standards/introduction-to-international-labouor-standards/conventions, Downloaded on 1-12-2021

  • Indian Ford, ( 2021), “Ford India Corporate profile”, https://www.india.ford.com/ Downloaded on 25-10-2021

  • Kia (2021), “Technology”, https://www.kia.com/ eu/about-kia/experience-kia/technology/, Downloaded on 10-11-2021

  • Krishnan, L. R. K. Sumathi, G. N. (2021), “Labor Policy Framework on a Downward Spiral in a Globalised Economy: An Indian Experience, as it Unfolds”, National Journal of Labour and Industrial Law, Vol 4 Issue(1): pages 1–12

  • Live Mint (2021), “Ford India in Process of Coming Out with Settlement Package for Staff: TN Govt”, ht tps://www.livemint.com/ news/india/ford-india-in-process-of-coming- out-with-settlement-package-for-stafftn- govt-11632325276759.html, Downloaded on 29-9-2021

  • Maruti Suzuki (2021 ), Technology, https:// www.marutisuzuki.com/corporate/technology/ automatic, Downloaded on 10-11-2021

  • Mathilde Carlier (2021), “Ford “, https://www.statista.com/statistics/267305/total-revenue-of-ford/, Downloaded on 20-10- 2021.

  • Mich Dearborn, (2021), “Customer Focused Ford Strategy”, https://media.ford.com/content/ fordmedia/fna/us/en/news/2021/12/08/jim-farley- to-describe-customer-focused-ford—strategy-in-dec—9.html, Downloaded on 9-11-2021 Downloaded on 26-10-2021.

  • News 18 (2021), “Ford India Shutdown: 4,000 Employees Could Lose Jobs” https:// www.news18.com/news/business/ford-india- shutdown-4000-employees-could-lose-jobs-workers-ask-tn-govt-help-4209638.html, Downloaded on 29-9-2021

  • Padhi P.K. (2017 a), Labor and industrial Law, Factories Act 1948, Page nos-793 to 904, 4th edition, PHI Learning Private Limited, ISBN-978-93-88028-93-6

  • Padhi P.K. (2017 b), Labor and industrial Law, Industrial Dispute Act, 1947, Page nos - 54-276 4th edition, PHI Learning Private Limited, ISBN-978-93-88028-93-6

  • Poorani, S. & Krishnan, L. R. K. (2021), “The Impact of Business Cycles on the Employee Turnover Process in the Automobile Industry”, Journal of Management Information and Decision Sciences, Vol. 24, Issue (7), Pages 1-13.

  • Priyanka Mehra, (2021), Auto Compendium Industry overview. Grant Thornton.in, https://www.grantthornton.in/globalassets/1.-member-firms/india/assets/pdfs/autocompendium-fy21-v2.pdf

  • Prowessiq (2021), “Year wise Comparison of Financial Data”, Prowessiq.cmie.com, downloaded on 28.11.2021

  • Rathnamma, Rajendra Prasad (2017), “Industrial Disputes in India - An Analysis”, Shanlax International Journal of Economics, 5(3): 20

  • Rushlane.com (2021), “Car Market Share March 2021”, https://www.rushlane.com/car-market-share-march-2021-12398772.html, Downloaded on 15-11-2021

  • Simi Mishra (2021 ), “How Ford’s Dated Product Line-up, Low Demand Left It Uncompetitive and Led to Its India Exit”, https://www.firstpost.com/business/how-fords-dated-product-line-up-low-demand-left- it-uncompetitive-and-led-to-its-india-exit-9981321.html, Downloaded on 25-9-2021

  • Statista (2021) “Sales Volume of Ford Cars Across India in 2020 , by Model”, https://www.statista.com/statistics/1091569/india-ford-car-sales-by-model/Downloaded on 1-12-2021

  • Sudhakar Shah, (2014), Wards Auto.com “Ford India Workers Emulate Gandhi in Pay Protest”, https://ward sintelligence.informa.com/WI004906/Ford-India-Workers-Emulate-Gandhi-in-Pay-Protest downloaded on 1-11-2021

  • Sugato, sen (2009), “Non-Tariff Barriers in Automobile Industries, SIAM( Society of Indian Automobile Manufactures”, https://www.bis.gov.in/other/SIAM-NTB.pdf

  • Tofler.in (2021), “Financials of Ford India Private Limited”, https://www.tofler.in/ford-india-private-limited/company/U34103TN2000PTC045537/financials, Downloaded on 25-11-2021

  • Venkatachari J. (2021), Free Press Journal, Ford India workers’ future in TN govt’s hands: Ex-Union leader https://www.freepress journal.in/business/ford-india-workers-future-in-tn-govts-hands-ex-union-leader downloaded on 2-10-2021

  • Wikipedia (2021), “General Motor India Closure Announcement”, https://en.wikipedia.org/ wiki/General_Motors _India, Downloaded on 1-12-2021

  • Willy, C. Shih ( 2018), “The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures”, Harvard Business Review, https://hbr.org/2018/11/the-challenges-gmis-facing-and-the-reasoning-behind-its-plant-closures

  • Yuthika Bhargava (2019), The Hindu “Why Is the Auto Industry Facing Trouble?,” https:/ /www.thehindu.com/business/Industry/ why-is-the-auto-industry-facing-trouble/ article29121023.ece Downloaded on 15-11-2021


Abstract Views: 254

PDF Views: 0




  • Ford Debacle Derails ‘Make in India’ Plans: Socio Economic Impacts

Abstract Views: 254  |  PDF Views: 0

Authors

L.R.K. Krishnan
VIT Business School, Chennai., India
S. Poorani
VIT Business School, Chennai., India

Abstract


Ford India operations ended up losing roughly two billion dollars due to lack of demand and sales. The pandemic has placed the company on the back foot, unprecedented failures and affecting the livelihoods of employees. The shutdown of the company’s Indian wing will reduce up to 4,000 factory jobs, with over 2,600 regular employees and around 1,000 contract workers. The shutdown will also affect auxiliary companies that sell minor components and parts to Ford. Data were collected from workers, union leaders, union members, dealers, customers, and management to understand the issues faced by Ford. Indian operations were typically marginal and vulnerable to significant economic shifts; export was a face-saver. The study attempts to present the impact of the closure on the socio-economic conditions of workers.

Keywords


No Keywords

References