Automakers Ford Motor Company and Mahindra & Mahindra have signed a new agreement to create a joint venture that will develop, market an...
Automakers Ford Motor Company and Mahindra & Mahindra have signed a new agreement to create a joint venture that will develop, market and distribute Ford vehicles in India. The announcement comes amidst rife speculations, and the joint venture will see the American carmaker transfer ownership of its Sanand and Chennai facilities to Mahindra. Under the new JV, Mahindra owns a 51 per cent controlling stake, while the remaining 49 per cent will be owned by Ford. While the companies will co-develop products going forward, they will continue to retail offering across their independent dealer networks.
Mahindra and Ford say the joint venture is the next step in the strategic alliance that was first introduced in September 2017. The JV will be operational by mid-2020 and will be operationally managed by Mahindra with governance to compose members from both the manufacturers. The joint venture will be responsible for growing Ford's presence in India and exporting its products the company's entities globally. The brand will continue to remain in India.
The joint venture will see the brand co-develop new products and this includes three new UVs under the Ford brand starting with a new mid-size SUV that will have a common platform and powertrain shared by the companies. The automakers are also developing the new generation Aspire EV that is currently under development and will use a powertrain from the Indian automaker.
The newly developed products will not only cater to India but several other emerging markets globally. The JV will see Mahindra leverage Ford's global presence to enter newer markets and export its products. At present, the Indian auto giant's exports stand at about sevent per cent of its total automotive business revenues. The brands will also maximise economies of scale in the automotive value chain including sourcing, product development and access to new technologies.
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