Advertisement
Wednesday, Dec 01, 2021
Outlook.com
Outlook.com
Automobiles

Need Clarity On Compensation Structure For Dealers: FADA President To Ford

FADA represents 15,000 automobile dealers and 26,500 dealerships across India, it had termed the North American Automaker's exit as shocking

Need Clarity On Compensation Structure For Dealers: FADA President To Ford
Need Clarity On Compensation Structure For Dealers: FADA President To Ford
outlookindia.com
2021-09-16T14:52:14+05:30

Federation of Automobile Dealers Associations (FADA) President Vinkesh Gulati wrote to Ford India seeking clarity on the potential compensation structure for its dealer partners after announcing its exit from manufacturing in India. Gulati in a letter to Ford India President & Managing Director Anurag Mehrotra highlighted how customers were cancelling bookings following the exit announcement. According to him, dealers could potentially face huge losses.
"We would request you to kindly share with us the broad contours of the compensation structure, which you may have planned by now for compensating our members. This will not only help us in understanding the entire compensation process but will also assist us in handholding our members and ensure that the entire process is done in an amicable and justified manner," Gulati said in the letter.


He further added that the non-disclosure agreement (NDA) communication sent to the dealers by the north-American automakers does not carry a specific description of the confidentially clause. “While dealing with confidentiality, one can understand in case the financials owing to the proposed exit, which gets discussed with each independent dealer, should remain confidential, the recitals to the NDA should hence carry a specific description of the nature of things which needs to be kept undisclosed," Gulati said.


Ford announced its exit from manufacturing in India, last week. This was part of a major restructuring process undertaken by the company. The American firm had invested around $2.5 billion at its Chennai and Sanand plants and had incurred losses of $2 billion over the last 10 years. (Full Story)


FADA represents over 15,000 automobile dealers and 26,500 dealerships pan-India. It had expressed shock on the automaker's exit announcement as dealers are believed to have invested Rs 2,000 crore in creating their sales infrastructure.

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

PM Modi’s Meeting With Vladimir Putin Likely To Reaffirm Indo-Russia Links

PM Modi’s Meeting With Vladimir Putin Likely To Reaffirm Indo-Russia Links

Though Narendra Modi’s foreign policy is seen as tilting towards the US, he is aware of the importance of Russia and the need to maintain the special and privileged strategic partnership with Moscow.

'Omicron Virus' Or 'South Africa Variant'? Here's What Not To Call New Covid-19 Strain

'Omicron Virus' Or 'South Africa Variant'? Here's What Not To Call New Covid-19 Strain

The Omicron variant of Covid-19 has led to several discussions on WHO's method of naming virus variants on Greek alphabets. But terms like 'South Africa virus' have remained in use.

SL Vs WI, 2nd Test, Live: Windies Pray For Rain To Stay Away

SL Vs WI, 2nd Test, Live: Windies Pray For Rain To Stay Away

Follow live cricket scores of Day 3 of the second Test between Sri Lanka vs West Indies in Galle. West Indies are replying to Sri Lanka's first innings score of 204 all out in a rain-hit contest.

Kashmir: Why Is BJP Predicting Doomsday For J&K 2 Years After Article 370 Abrogation

Kashmir: Why Is BJP Predicting Doomsday For J&K 2 Years After Article 370 Abrogation

The statement, issued by senior BJP leader of J&K Ashwani Kumar Chrungoo, raises concern for minorities living in Kashmir Valley.

Advertisement