By Samachar Vishesh News
Chandigarh 01st October:- Mahindra
& Mahindra Limited and Ford Motor Company have signed a definitive
agreement to create a joint venture that will develop, market and distribute
Ford brand vehicles in India and Ford brand and Mahindra brand vehicles in
high-growth emerging markets around the world.
Mahindra and Ford will form a joint
venture, with Mahindra owning a 51 percent controlling stake and Ford owning a
49 percent stake. Ford will transfer its India operations to the joint venture,
including its personnel and assembly plants in Chennai and Sanand. Ford will
retain the Ford engine plant operations in Sanand as well as the Global
Business Services unit, Ford Credit and Ford Smart Mobility.
The joint venture is the next step in
the strategic alliance forged between Ford and Mahindra in September 2017 and
is expected to be operational by mid-2020, subject to regulatory approvals. The
joint venture will be operationally managed by Mahindra, and its governance
will be equally composed of representatives of Mahindra and Ford.
The joint venture will be responsible
for growing the Ford brand in India and exporting its products to Ford entities
globally. Ford will continue to own the Ford brand, and its branded vehicles
will be distributed through the current Ford India dealer network. Mahindra
will continue to own the Mahindra brand and operate its own independent dealer
network in India.
Anand
Mahindra, Chairman, Mahindra Group said that 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.
Bill
Ford, executive chairman, Ford Motor Company said that 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.
Jim
Hackett, Ford president and CEO said that 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.
The joint venture expects to
introduce three new utility vehicles under the Ford brand, beginning with a new
midsize sports utility vehicle that will have a common Mahindra product
platform and powertrain.
Another area of focus for the joint
venture will be electric vehicles. Ford and Mahindra will collaborate to
develop vehicles to support the growth of sustainable mobility across emerging
markets.
Driving greater economies of scale
across the automotive value chain including sourcing, product development and
access to relevant technologies, the joint venture is expected to achieve
enhanced efficiencies to strengthen the Ford brand in India. In addition, the
joint venture will be a catalyst for growth for the Ford and Mahindra brands in
emerging markets, which are growing at double the rate of the global industry.
The joint venture will use the Ford
brand distribution network in emerging markets to extend support for export of
Mahindra products, in addition to Ford branded vehicles. Exports today form
about 7 percent of Mahindra’s auto business revenues and its products are
exported to South Africa, Nepal, Bangladesh, Sri Lanka and Chile, among other
nations and areas.
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