64,000 jobs lost due to exit of auto multinational companies

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As many as 64,000 jobs were lost and automotive dealers had to take a hit of about Rs 2,485 crore due to the closure of operations of five global auto companies, the Federation of Automotive Dealers Associations (FADA) has said.

In a letter to the Union heavy industries minister Mahendra Nath Pandey, the FADA calculated the loss due to closed workshops and dealerships, The Times of India has reported.

Ford, General Motors, Harley Davidson, MAN Trucks and UM Lohia are the five auto MNCs that have shut shop in India.

In the letter, FADA further said that with the production stoppage at Ford, a total of 170 dealerships will be affected, taking the total five-brand tally to 464 dealerships in all.

Of the 64,000 job losses, the newspaper reported, Ford and GM accounted for 40,000 and 15,000 job losses, respectively. Job losses due to closure of operations MAN Trucks were 4,500 jobs; UM 2,500 and Harley Davidson 2,000 jobs, the letter said.

US auto major Ford is asking dealers to first sign non-disclosure agreement before any compensation package is worked out. Ford dealers have asked FADA to take up the matter for amicable resolution, the report said quoting the letter .

Stating that FADA has written to the Ford management on this “coercive” action and the letter requested the ministry to set up a taskforce to monitor the dealer and dealer employee compensation on a day-to-day basis.

The sudden exits have resulted in great distress to the entire auto retail industry, FADA President Vinkesh Gulati is quoted as saying in the New Indian Express.