Mahindra-Ford Partnership to launch SUVs, electric vehicles: 5 new MoU signed, Hyundai Creta rival on cards - The Financial Express

Mahindra-Ford Partnership to launch SUVs, electric vehicles: 5 new MoU signed, Hyundai Creta rival on cards

Mahindra and Ford also agreed to evaluate co-development of a compact SUV and electric vehicle, along with sharing powertrain portfolios, including the supply of Mahindra powertrains to extend Ford’s product range. Mahindra and Ford confirms development of a new SUV that will take on the likes of Hyundai Creta.

By: | Updated: March 22, 2018 8:54 PM
Mahindra-Ford partnership to launch SUVs and electric vehicles

Mahindra and Ford Motor Company first announced its partnership in September 2017 and now confirms that this partnership will yield new SUVs and small electric vehicle as a part of several initiatives. Mahindra and Ford will jointly make platforms for new upcoming SUVs and small electric cars. Mahindra is a leading name in UV space and globally Ford has the resources and is a leader in new technology including electric cars.

The partnership between Ford and Mahindra will first see the development of a new midsize SUV (C-SUV) which will be based on the Mahindra platform. This new SUV platform will be used by both Mahindra and Ford and will be sold independently by both the companies as separate brands. Mahindra and Ford also agreed to evaluate co-development of a compact SUV and electric vehicle, along with sharing powertrain portfolios, including the supply of Mahindra powertrains to extend Ford’s product range.
Continuing its partnership, Mahindra and Ford have signed five new memoranda of understanding (MoU) that further strengthen their strategic alliance and also accelerate the development of key products for consumers in India and emerging markets. "The MoUs, which are non-binding, mark the progress made by the two companies since announcing their alliance in September 2017" Ford said in a statement.

Building on the collaboration, Mahindra and Ford also announced plans to co-develop a suite of connected car solutions for its customers.

“Today’s announcement is the next step in the collaboration between Mahindra and Ford,” said Dr Pawan Goenka, Managing Director, Mahindra and Mahindra. “Both teams are working together on joint development areas in keeping with industry requirements and leveraging mutual strengths. We are excited about the synergies unveiled through this collaboration and the potential opportunities it will bring.”

“Ford is committed to offering the best vehicles, technologies, and services that fit the lifestyles and preferences of Indian consumers,” said Jim Farley, Ford executive vice president and president of Global Markets. “Listening to our customers and incorporating their future needs is the core premise of this collaboration. With utility vehicles and electrification as key focus areas, we are glad to see the progress our two companies have made.”

Mahindra and Ford are leveraging each other's strengths to improve its efficiencies with this new strategic alliance. Ford's global reach and technology along with Mahindra's scale in India especially in TIER-II, TIER-III and rural India might just see a proper chain of building a successful operating business model.

Teams from Ford and Mahindra contribute and work together, for a period of up to three years, to develop further avenues of strategic cooperation such as:

- Extend support for Mahindra in global emerging markets, including Ford’s manufacturing and distribution network

- Collaborate to address future mobility needs

In the past, Mahindra has had a global partner in its passenger vehicle business. In 2007 Mahindra formed a joint venture with Renault and the partnership also saw the rollout of Mahindra Renault Logan sedan. However, later things went south and Mahindra ended the joint venture in 2010 by buying Renault's stake in the joint-venture.

New SUVs and electric vehicles as a result of Mahindra-Ford Partnership is an exciting news. Globally, with electric mobility taking the center stage, its these partnerships with automakers that will see the translation of a successful business model. Tata Motors and Skoda also got into the talks of partnering with each other in 2017 but the partnership was called off before it was finalized.

 

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