Sept. 9 (UPI) -- Automaker Ford announced on Thursday that it will cut back vehicle production in India after losing $2 billion in investments.
Ford CEO Jim Farley said the move was "difficult but necessary" for a "sustainably profitable business longer-term."
"Despite investing significantly in India, Ford has accumulated more than more than $2 billion over the past 10 years and demand for new vehicles has been much weaker than forecast," Farley said in a statement.
Manufacturing will end immediately and exports will wind down at the Chennai plant in the coming months, the automaker said.
The shutdown is expected to affect 4,000 employees.
"This restructuring is a response to increasingly challenging market conditions including the extended slowdown of India's auto industry," Anurag Mehrota, president and managing director of Ford India, said.
"Ford India will continue engine manufacturing for export, as well as full customer support operations with service, aftermarket parts and warranty support," the company added.