Mahindra Ford JV officially announced
- Mahindra and Ford have officially signed a joint venture (JV) with the aim of developing and marketing the latter’s passenger cars in India. This partnership is expected to come into fruition in mid-2020.
- The JV, which is valued at Rs 1,925 crore, will give Mahindra a controlling stake of 51 per cent versus Ford’s 49 per cent.
- Ford will transfer its Indian operations, including its manufacturing facilities and workforce, to this JV. However, the company’s engine plant at Sanand, Global Business Service unit, Ford Credit and Ford Smart Mobility will continue to operate under the US-based Ford Motor Company.
- Also, Mahindra will use Ford’s distribution network in countries like Nepal, Bangladesh, Sri Lanka, South Africa, etc. to expand its global presence.
- Both companies will work collectively to develop three new vehicles, the very first of which will be a mid-size SUV. Also, the JV will work on developing electric vehicles for emerging markets.
- However, it must be noted that both Mahindra and Ford will continue to see their vehicles via their respective sales network. So, don’t expect to see Ford cars being sold through Mahindra dealerships or vice versa.