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Ford and Mahindra announce tie up

Tag team: Mahindra and Ford have entered a three-year agreement to collaborate on a number of mutually beneficial areas.

Three-year agreement from Ford and Mahindra to share strengths and technologies

19 Sep 2017

FORD and Mahindra have announced a three-year memorandum of understanding that will see the two car-makers collaborate in areas such as electrification, product development and distribution.

The agreement is aimed to strengthen Ford’s commitment to the Indian market, while Mahindra hopes to benefit by expanding into other emerging global markets.

Both companies have outlined a number of different areas in which they can collaborate, including mobility programs, connected vehicle projects, electrification, product development, sourcing and commercial efficiencies, as well as distribution within India and in global emerging markets.

Whether there will be any further cooperation after the three years is up will be determined then.

Part of the reason for the relationship is the rapidly changing and evolving automotive landscape, with both companies looking to use each other’s strengths to their respective benefit.

Ford executive vice president and president of global markets Jim Farley said the collaboration would help Ford improve its standing in the massive Indian automotive market.

“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,” he said.

“Our two companies have a long history of cooperation and mutual respect. 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.”

India holds the second-largest Ford employee base globally, with more than 14,000 people employed by Ford India or Global Business Services operations in New Delhi, Chennai and Coimbatore.

Ford manufactures and exports cars and engines from its manufacturing facilities in Chennai, Tamil Nadu and Sanand, and has had a presence in India since 1995.

Seeking help from Mahindra in the utility market comes with a large amount of pedigree for the Indian manufacturer, having lead the utility vehicles segment in India for the past seven decades.

It is also the only manufacturer with a portfolio of electric vehicles commercially available in India, including the GenZe electric scooter.

Mahindra managing director Pawan Goenka said the collaboration would help facilitate its push into other markets.

“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,” he said.

“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.”

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