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Indonesian Dealers Seek Aid As Ford Exits Market
Ford Motor Co. dealers in Indonesia want about $75 million in compensation after the company announced in January it is closing down operations in the country.
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Ford Motor Co. dealers in Indonesia want about $75 million in compensation after the company announced in January it is closing down operations in the country.
Three groups representing 31 Ford dealerships tell Reuters they will take legal action in a Jakarta court if Ford doesn’t respond. The businesses, which say they generate 85% of Ford’s sales in Indonesia, claim the company’s decision to leave the market was unexpected and unfair.
Ford says it intends to work with local dealers to implement the exit plan later this year. The company, which imports the vehicles it sells in Indonesia, accounts for less than 1% of the market, which is dominated by locally produced Honda and Toyota vehicles.
The company attributed its decision to abandon sales operations in Indonesia and Japan this year to poor demand in both markets. The company said at the time it sold a combined 11,100 imported vehicles last year in the two countries.
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