Auto Dealer Corps FADA has sought clarification from Ford on the compensation structure it is developing for its dealer partners after announcing the closure of its two manufacturing plants in the country as part of a restructuring exercise. In a letter to Ford India MD President and CEO Anurag Mehrotra, FADA President Vinkesh Gulati highlighted the difficulties faced by the company’s dealers across the country.
He noted that Ford dealers were taking huge losses as customers started canceling bookings following news of the plant’s closure.
Gulati said dealers were concerned about the pay structure, as many were not even five years into the system and may not even have reached breakeven point.
“We kindly ask you to give us an outline of the compensation structure, which you may have already planned to compensate our members. This will not only help us understand the whole compensation process, but will also help us manage our membership and ensure that the whole process runs in a friendly and fair manner, ”Gulati said in the letter.
He also highlighted problems with the nondisclosure agreement (NDA) communication sent by the automaker to its dealer partners. “The Non-Disclosure Agreement (NDA) currently includes all information of any kind in the definition of confidential information.
“While dealing with confidentiality, it can be understood that in the event that the financial data due to the proposed release, which is discussed with each independent reseller, should remain confidential, the recitals to the NDA should therefore include a specific description of the nature of things that need to be kept secret, ”Gulati said.
The NDA shared by the company should be clear, he added. “So I ask that you please change the current NDA and let us know so that we can properly explain it to our members.
We would like to reiterate once again that FADA will continue to be strong with its member dealers and will do all it can for them and the 40,000 employees who work at Ford dealerships.Vinkesh Gulati, President of FADA
“We would like to reiterate once again that FADA will continue to be strong with its member dealers and do everything possible for them and the 40,000 employees who work at Ford dealerships,” said Gulati. Last week, U.S. auto major Ford Motor Co announced it would halt vehicle production at its two factories nationwide and only sell imported vehicles as part of a restructuring exercise.
The company, which has invested around $ 2.5 billion in its factories in Chennai (Tamil Nadu) and Sanand (Gujarat), has accumulated operating losses of around $ 2 billion in India over the past ten years. last years. Its decision will affect more than 4,000 employees and approximately 150 major dealerships that operate more than 300 outlets.
It will, however, continue to manufacture engines from its Sanand plant, which will be exported to the company’s global operations.
With the closure of vehicle manufacturing operations, the automaker will stop selling vehicles such as the EcoSport, Figo, Endeavor, Freestyle and Aspire, which are produced from these factories.
Ford dealers in India face huge losses as the automaker decides to shut down production in the country with immediate effect.
FADA, which represents more than 15,000 car dealerships and 26,500 dealers across the country, called the automaker’s move shocking, as dealers have invested more than Rs 2,000 crore in creating an infrastructure for sales while employing approximately 40,000 people across the country.
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