Ford Motor Company is planning to end operations in Indonesia and Japan by the end of the year.
Associated Press reports that the automaker has informed its dealers in the two countries that it will halt operations due to challenging automotive market conditions and slow sales. The Japanese auto market has been especially tough for The Blue Oval. Even though Japan is the world’s third largest automobile market after China and the United States, the automaker managed to sell only 5,000 vehicles in the country throughout 2015.
In an e-mail to Associated Press, Neal McCarthy, a Ford spokesman said that “Japan is the most closed, developed auto economy in the world, with all imported brands accounting for less than 6% of Japan’s annual new car market.”
Ford has sold vehicles in Japan for more than 40 years and currently has 52 dealerships in operation nationwide. The automaker has informed its dealers and customers that it’s still working out a plan to figure out how to address future service and warranty issues.
In Indonesia, it’s a similar story where the automaker is facing tough competition from Japanese automobile brands. In 2015, Ford managed to sell just 6,103 vehicles in Indonesia, this represents a sharp drop from 11,614 vehicles it sold in 2014.
In a company released statement, Ford Motor Company said that “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.”