Ford is planning to shutter operations in Japan and Indonesia by the end of the year. According to an Associated Press report, the automaker has informed dealers in those countries that it will cease operations due to challenging conditions and low sales.

Japan has been especially tough for the automaker. Though Japan is the world’s third largest auto market behind China and the U.S., Ford has sold just 5,000 cars in the country last year.

“Japan is the most closed, developed auto economy in the world, with all imported brand accounting for less than 6% of Japan’s annual new car market,” said Ford spokesman Neal McCarthy, in an email to the Associated Press.

Ford has been selling cars in Japan for over 40 years and currently has 52 dealerships in operation. The automaker informed dealers and customers it’s still working out a plan regarding future service and warranty needs.

It’s a similar story in Indonesia where Ford faces tough competition against Japanese brands. Last year, the automaker managed to sell 6,103 vehicles in Indonesia, which represents a sharp drop from the 11,614 vehicles it sold in 2014.

“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 automaker said in a statement.

Source: Associated Press, The Wall Street Journal

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Source: Motor Trend