Mahindra and Mahindra Limited and Ford Motor Company have today inked an agreement in order to create a joint venture for India as well as other emerging markets. The joint venture between the two automotive behemoths is going to focus on the development, marketing and distribution of Ford-branded vehicles in India. In the other emerging markets, this JV will do the same for both Ford and Mahindra-branded vehicles. Mahindra has a controlling stake of 51 per cent in this joint venture with Ford owning a 49 per cent stake.
This JV between the two companies comes as the next step of the alliance between the two companies which was forged back in September 2017 and is going to come into operation from mid-2020. Though under this partnership, the operations will be managed by Mahindra, it will include representatives from both the brands. The entire operations of the Ford brand in India will now be transferred to this joint venture which includes its personnel as well as the assembly plants in Sannad and Chennai. However, Ford’s engine plant in Sannad along with Global Business Services unit, Ford Credit and Ford Smart Mobility will be retained by Ford.
Ford vehicles will continue to retail through Ford dealerships. While Mahindra vehicles will retail through Mahindra dealerships. The joint venture will bring in three new utility vehicles under the Ford brand. The first of this is going to be a mid-size SUV which will use a Mahindra platform. In addition to this, the JV is also going to focus on the development of electric vehicles.
“Mahindra and Ford coming together is a testament to the long history of cooperation and mutual respect between the two companies. Our combined strengths – Mahindra’s expertise in value-focused engineering and its successful operating model, and Ford’s technical expertise, global reach and access to future technology – are a potent recipe for success. At its core, the partnership will be driven by the shared values of both companies, which are focused on caring for our customers, associates and our communities,” said Anand Mahindra, chairman, Mahindra Group.
“Ford and Mahindra have a long history of working together, and we are proud to partner with them to grow the Ford brand in India. We remain deeply committed to our employees, dealers and suppliers, and this new era of collaboration will allow us to deliver more vehicles to consumers in this important market,” said Bill Ford, executive chairman, Ford Motor Company.
“At Ford, our purpose for 116 years has always been to drive human progress, and that won’t change. But to continue to do that, we need to evolve with new and faster ways of not only delighting our customers around the world but also solving their very different needs. Strong alliances like this play a crucial role in assuring we continue to achieve our vision while at the same time staying competitive and delivering value to our global stakeholders,” said Jim Hackett, Ford president and CEO.