Ford withdraws from Indonesia and Japan

Ford has confirmed its withdrawal from the Indonesian market this year, the company announced in a statement released yesterday. Overseas reports (WSJ and CNBC to name two of our sources) additionally confirm that exit plans are also being implemented in Japan.

Official sales and import of all new Ford vehicles will cease in our neighbouring republic from the second half of 2016. A similar withdrawal timeline will be executed for the Japanese market.

“We wish to ensure that [customers] can continue to visit Ford dealerships for full support for sales, service, and warranty for some time this year. We are committed to maintain a smooth transition of aftersales and warranty coverage even after our departure from our market,” said Ford Motor Indonesia Managing Director Bagus Susanto in a statement directed to Ford customers in the country.

At present, Ford’s line-up in Indonesia consists of the Fiesta, Focus, EcoSport, Ranger, and Everest. In Japan, the range is made up of the Fiesta, Focus, Mustang, EcoSport, Kuga, and Explorer. The company also offers its Lincoln luxury brand over at the Land of the Rising Sun.

According to reports on our Indonesian sister site Mobil123.com, Ford’s shocking announcement comes less than a year after General Motors (GM) shut down its Bekasi plant in Indonesia. GM, however, continues to maintain market presence in Indonesia with a range of fully-imported Chevrolet vehicles.

GM’s Bekasi plant first opened in 1995 and was then rendered dormant in 2005. It was then revived in April 2013 as production hub of the Chevrolet Spin for domestic consumption as well as export to Thailand and Philippines. GM pulled the plug on the US$150 million project last June.

Ford’s struggles in Indonesia contrasts starkly with the company’s performance in the greater ASEAN region which recorded an 80% increase in overall sales in 2015 to an all-time record of 54,114 units in all countries.

According to CNBC’s report, Ford sold only 6,100 and 5,000 vehicles in Indonesia and Japan respectively in the whole of 2015. In the same period, the Blue Oval managed to shift 12,130 vehicles into Malaysian homes, with the Ranger accounting for 9,264 units.