Ford Motor Co is to close down all operations by the end of this year in Japan and Indonesia, where the US automaker said it has no path to boost sales or earn profits.
The step is being taken “after pursuing every possible option,” Ford’s Asia-Pacific region spokeswoman Karen Hampton said in an e-mailed statement.
The company is to provide ongoing support to customers for service, spare parts and warranties, she said.
“It has become clear that there is no path to sustained profitability, nor will there be an acceptable return over time from our investments in Japan or Indonesia,” Hampton said.
Ford is committed to restructuring parts of its business that “have no reasonable path to achieve sales growth,” she said.
The exits by Ford are the latest examples of an automaker losing patience in struggling auto markets in parts of Asia that are dominated by Japanese manufacturers. General Motors Co (GM) last year closed down its factory in Indonesia, the largest car market in Southeast Asia. Industrywide sales in both Indonesia and Japan slumped in each of the last two years.
While Indonesia is the largest economy in Southeast Asia, Toyota Motor Corp and its affiliate Daihatsu Motor Co dominate by accounting for about half of all vehicles sold, according to LMC Automotive. Including Honda Motor Co and Suzuki Motor Corp, the companies have a market share of about 80 percent.
Ford is not alone in struggling in Indonesia or Japan’s car markets. Hyundai Motor Co and Kia Motors Corp combined to sell fewer vehicles than Ford in Indonesia last year.
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