Two automobile giants Mahindra & Mahindra and Ford Motor Company have recently signed an agreement. It’s a joined venture in India, which is valued at Rs 1,925 crore. In this endeavor, the two companies added that the joined entity will develop, market and distribute Ford-branded vehicles in India.
The joint venture is operationally to be managed by Mahindra, where it will own 51 per cent and Ford will hold a 49 per cent. That said, the governance will be equally composed of representatives from both Ford and Mahindra.
Under the deal, the American automaker Ford will transfer its India operations to the joint venture, including its facilities and plants based in Chennai and Sanand.
As per the statement by Mahindra & Mahindra in Bombay Stock Exchange, this joint venture between Ford and Mahindra is a next step in the strategic alliance forged between them in September 2017.
Both Mahindra and Ford will continue to use their own brand for distribution of their branded vehicles and operate their own independent dealer network in India.
According to Ananda Mahindra, Chairman of Mahindra Group, this joint venture is a testament to the long history of cooperation and trust between the two companies. Mahindra with its expertise in value-focused engineering and Ford with its global reach can be a recipe for success.
Commenting on the development, Bill Ford, executive chairman, Ford Motor Company says that this new era of collaboration is very likely to bolster the automobile sector and their history of working together can deliver more vehicles in the coming few years.
The entity is expected to introduce 3 new utility vehicles under the Ford brand, which will begin with a sports utility vehicle that will have a common Mahindra platform.
With global warming rising, another emphasis from this venture would be on electric vehicles, to support the growth of green energy and sustainable mobility across emerging markets in India.