Ford’s Indonesian Trouble 0

Fords-Indonesian-TroubleFord may be in a lot of trouble in Indonesia over the sudden loss of investment in the country. Although many in the motoring world don’t know why this has happened, many believe that huge competition from other competitors have led the American based company to pull out of Indonesia completely.

The Indonesian market is the largest in South East Asia and therefore, competition in this single market is tough. The car market in Indonesia is also extremely competitive and Ford has faced competition from the likes of Toyota and Honda, who generally dominate in the South East Asian market. Many in the motoring world believe that this is the reason why Ford has suddenly pulled out.  This has therefore cost Indonesian Ford investors millions.

These investors are now looking to sue Ford because of this action. There are six businesses who oversee 31 Ford dealerships in the country. One of these businesses has invested a total of $38 million over the past few years, which they have now lost. This comes after Ford stated that they were going to carry on investing in the South East Asian country back in 2011.

Ford did not present a reason for their sudden departure, and this is why the companies who have dealerships are suing Ford. Lawyer Harry Ponto said that, “My clients represent 85 percent of total Ford sales in Indonesia. We sent a warning letter on June 1. However, Ford ignored it, thus a second warning letter was sent on June 13.” It seems as if all these dealerships want is compensation from a company that have suddenly jumped ship. It will now be the dealerships having to compensate a huge work force after a company refused to carry on selling vehicles in Indonesia.

It will be interesting to see what happens, let’s hope that the workers and businesses in Indonesia get what’s fair…