Indian automaker Mahindra and U.S based Ford Motor Company have joined hands to explore a strategic alliance to help each other in establishing a successful business model for Indian and other emerging markets. The new partnership is designed to leverage each other strength and make the most of it. The proposed collaboration will seek the benefits of Ford’s global reach and expertise and Mahindra’s scale in India and its successful operating model. The media statement released by both the company’s say that the teams from Mahindra and Ford will work together for an initial period of up to 3 years. Possibility to extend this deal will be decided at the end of that period. The agreement between the two companies will allow each to leverage their mutual strengths during a period of unprecedented transformation in the global automotive industry. Both the companies will join forces to work on mobility programs, Mobility programs, Connected vehicle projects, Electrification and Product development. The deal will also seek Ford to improve its reach in India and other emerging markets and help Mahindra to expand its foot prints to other international markets.
“Ford is committed to India and this alliance can help us deliver the best vehicles and services to customers while profitably growing in the world’s fifth largest vehicle market,” said Jim Farley, Ford Executive Vice-President and President of Global Markets.
“Our two companies have a long history of cooperation and mutual respect. The memorandum of understanding we have signed today with Mahindra will allow us to work together to take advantage of the changes coming in the auto industry. The enormous growth potential in the utility market and the growing importance of mobility and affordable battery electric vehicles are all aligned with our strategic priorities.” Jim added.
Dr Pawan Goenka, Managing Director, Mahindra and Mahindra commented: “The changes facing the automotive industry globally are triggered by the accelerated rise of new technologies, sustainability policies and new models of urban shared mobility. Given these changes, we see the need to anticipate new market trends, explore alternatives and look for ways to collaborate even as we compete and build powerful synergies that will allow rapid exploitation of the exciting new opportunities. Today’s announcement builds on the foundation laid through our past partnership with Ford and will open opportunities for both of us.”
This not the first time Mahindra has had a global partner. In 2007, Mahindra formed a joint venture with French automaker Renault that saw the roll out of Mahindra Renault Logan sedan. In 2010 later, Mahindra ended the joint-venture by buying the Renault’s stake in the joint-venture.