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January 25, 2016

Ford to exit Japan and Indonesia markets

Ford says it will close down all operations by the end of this year in Japan and Indonesia, where it says it has no prospect of making a profit.

By David Leggett

Ford says it will close down all operations by the end of this year in Japan and Indonesia, where it says it has no prospect of making a profit.

Bloomberg reports that the step is being taken “after pursuing every possible option,” according to an emailed statement. However, the company will provide ongoing support to customers for service, spare parts and warranties, Bloomberg reported.

“It has become clear that there is no path to sustained profitability, nor will there be an acceptable return over time from our investments in Japan or Indonesia,” the statement said. “Ford remains committed to serving global markets while aggressively restructuring parts of our business which have no reasonable path to achieve sales growth.”

The Japanese car market has long been a difficult one for import brands, some of whom have complained about barriers to entry in the past. High costs and low volume as well as the weak yen have made it a very difficult operating environment for importers.

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