Can Ford India Customers File Court Case Against Ford: Here’s The Legal Truth
After automakers like General Motors and Harley Davidson’s exit from the Indian market, US compact SUV maker Ford has now exited the Indian market, making it the fifth automaker to do so.
Needless to add, the automaker’s sudden announcement of discontinuing car manufacture in India has led to an air of confusion and chaos not just in the customers of the US carmaker but also among various auto-dealer groups.
The country’s top auto dealer groups and associations have reached out to the industries ministry under Government of India to address the problems they will face due to Ford’s sudden stance and have requested the ministry to draft rules which would safeguard dealers’ interests under such scenarios.
Besides, due to an outburst from the customers of the US carmaker in India, it is being anticipated that they (Indian customers) could take legal actions against Ford, on issues of facing problems with the dealerships and services.
Ford’s Sudden Exit from India Leaves Customers Perplexed
After Ford announced to leave the India market and discontinue manufacturing any new models in the country in future, customers and Ford dealers in India did not handle the news very well.
There has been a state of perplexity among both the parties. This could result in the customers of the company taking legal action against the US carmaker, shall they meet any issues in services.
Similarly, Indian automobile dealerships of Ford are equally worried and confused. They have approached the Government’s help in this case.
Top auto dealer groups have asked the Government to come up with rules which would safeguard their interests in such a scenario, as prior to Ford four more companies had left Indian markets and they (auto dealers) faced the hit.
The Federation of Automobile Dealers Association (FADA) have written to India’s industries ministry and informed about the distress they are finding themselves in.
With the five automakers (foreign) leaving Indian markets, the Indian auto-dealers not just faced a heavy loss but also led to a loss of 64,000 jobs.
As per Indian law, when a carmaker exits the Indian market, it has to keep in mind a list of responsibilities. As Ford still operates a couple of niche import products in India, it could face a lawsuit filed by its Indian customers.
After Ford’s announcement on leaving the Indian market, many dealerships were shut down and the few ones operating could only be found in major cities. Customers of smaller cities are finding it difficult to get even the most minimal services done.
Ford has been catering its services in the Indian market since about 25 years and a decision to discontinue has led to a blow of about $2 billion to the company, as it is unable to view any path of profitability by staying in India, stated the company.