Ford Motor Co. will wind up its operations in Japan and Indonesia by the end of this year, the company reportedly said Monday.
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The markets are not big ones for Ford. The company has not been able to achieve a “reasonable path to profitability”, according to an e-mail sent from Ford’s Asia Pacific president, Dave Schoch, to regional staff, according to excerpts published by Reuters. Even the product development now carried out in Japan will be shifted to another country.
Ford’s Indonesian presence is also being wound up this year. Last year, it sold around 5,000 vehicles in Japan and held a share of around 1.5 percent of the imported new auto market.
Japan’s automobile market has always been considered all but closed to foreign automakers-a situation that the proposed Trans-Pacific Partnership trade agreement is not expected to improve.
In Japan, Ford has on sale a total of six models available through 52 dealers: Fiesta, Focus, Mustang, EcoSport, Kuga, and Explorer, along with two Lincolns, the MKX and Navigator.
Ford says that it will contact customers to explain its commitment to servicing cars, providing parts and making warranty repairs.
Ford is following the lead of General Motors, which past year made a decision to stop manufacturing cars in Indonesia – resulting in the loss of 500 jobs.
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In Indonesia, where it entered the market in 2002, Ford has a staff of 35 and sells through 44 franchised dealerships.
