FADA requests for franchise protection bill after Ford India exit
India Today
The Federation of Automobile Dealers Associations (FADA) requested the government to roll out the Franchisee Protection Act as, due to its unavailability, auto dealers do not get adequately compensated.
On the backdrop of Ford exiting the Indian car market, the Federation of Automobile Dealers Associations (FADA) has requested the government of India to roll out the Franchisee Protection Act as due to its unavailability, auto dealers do not get adequately compensated like their counterparts in Mexico, Brazil, Russia, China, Indonesia, Malaysia, Japan, Italy, Australia, Sweden and many other countries, where this law exists. Vinkesh Gulati, FADA President said, “The auto retail fraternity is really shocked to hear another US auto major, Ford India's announcement, when it said that it would shut down production with immediate effect. Ford India assured that they will adequately compensate dealers who continue to offer vehicle service to customers. Though this is a good beginning, it is not enough as there are 170 dealers who, in turn, have 391 outlets and have invested Rs 2,000 crore in setting up their dealerships. While Ford India employs 4,000 people, dealerships employ around 40,000 people without displacing them from their home locations, thus being continuously skilled and up-skilled all this while.”More Related News