Industry News

Ford Just Got Its Butt Kicked By Japanese Automakers

The automaker is pulling out of two markets as it can't compete.

US automaker Ford will be pulling out of the Japanese and Indonesian markets. Ford has announced that it will close its dealerships in these countries and stop selling the Focus, Fiesta, and Mustang models there. Ford will also stop selling its Explorer, Kuga, and Ecosports SUVs as well and the Lincoln Navigator and MKX SUVs. Ford has been selling cars in Japan since 1974, but only managed 5,00 sales in 2015. This tiny share was not enough to justify keeping 52 dealerships open. With the close of these dealerships 300 people will be out of a job.

In addition, Ford will be pulling out of the Indonesian market. A Ford spokesman was quoted saying that there was no "reasonable path to profitability." This is a harsh reality for an automotive giant, but according to sources, Ford's imported cars simply could not compete with well established Japanese brands that have factories in these countries. The dealerships will remain open until 2017, at which time the brand's warranty responsibilities will be handed to a third-party company.

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