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Ford Motor's India exit opens dealers to legal action from customers

Dealers will likely face "legal complications" given that Indian consumer law makes them liable after a manufacturer exits, Vinkesh Gulati, president of the FADA said

Ford Motor
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Photo: Bloomberg

Ragini Saxena, Rishaad Salamat and Haslinda Amin | Bloomberg
Ford Motor Co. dealers in India face potential legal action from customers after the U.S. auto giant decided to shut its factories in the country. 
 
Dealers will likely face “legal complications” given that Indian consumer law makes them liable after a manufacturer exits, Vinkesh Gulati, president of the Federation of Automobile Dealers Associations, said in an interview with Bloomberg TV. 

“We expect Ford to give some compensation to dealers and plan something in future so that dealers aren’t in a legal strangle against customers in consumer court cases for their service responsibility,” Gulati said. 

Dealers invested about 20 billion rupees

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