FADA calls on government to monitor compensation structure for Ford India dealers

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The Federation of Automobile Dealers Associations (FADA) has called on the government to form a task force to monitor the compensation structure Ford is working on for its partner dealers across the country.



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Ford announced its exit from the Indian car market a few weeks ago

Ford leaving the Indian market has raised several concerns for both its existing customers and its dealer partners. While the company has promised to continue with after-sales service and parts availability for car owners, its dealer partners are still in the dark. The Federation of Automobile Dealers Associations (FADA) has called on the government to form a task force to monitor the compensation structure Ford is working on for its partner dealers across the country. In a letter to Heavy Industries Minister Mahendra Nath Pandey, FADA Chairman Vinkesh Gulati also called on the government to order Ford India to keep the industry body updated on all developments in the pay structure. .

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The exit of Ford India is likely to have an impact on 4,000 jobs in our market.

According to a Press Trust of India (PTI) report, the letter read: “We humbly request the intervention of your department to create a task force that takes daily updates from Ford India to monitor the dealership compensation plan. automobiles and dealer employees. Gulati said in the letter. In addition, Gulati also asked the ministry to ensure that Ford India compensates dealers for various civil and consumer cases, both pending and against any future cases that may arise directly or indirectly of the automaker’s restructuring announcement.

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Ford India plant in Sanand employs around 1,200 people

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The letter also mentioned that Ford India was forcing its dealers to sign a Non-Disclosure Agreement (NDA) by September 14, 2021, before any compensation package was worked out. Many Ford dealers have directly or indirectly asked FADA to take up the matter for an amicable resolution. The report further mentions that nearly 64,000 people lost their jobs in dealerships due to the exit of companies like General Motors, Harley-Davidson, Man Trucks, UM & Lohia and now Ford India, he said. added. Gulati also called on the government to officially initiate a discussion on the Automobile Dealers Protection Act. The exit of Ford India is also expected to have an impact on 4,000 jobs in the country.

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