Rico Auto to pay $2mn for ending Ford deal

Rico Auto Industries and Ford have mutually agreed to discontinue the agreement which the company had entered into with Ford on April 1, 2003 for furtherance of its business.

According to a Rico Auto release issued to the BSE, the cost of running the agreement was much higher than anticipated compared to the benefit that would have accrued to the company under this agreement.

As per the agreement, Rico Auto has agreed to pay $2 million in eight installments over a period of two years to Ford.

The company has said that the termination will not reflect on the business relationship with Ford in any way. Besides executing the ferrous & aluminium business already finalised, the company continues to participate in the upcoming projects of Ford & its global affiliates across North America, Europe & India, the release added.