Ford eyes JV with Mahindra & Mahindra
Ford and Mahindra & Mahindra are close to forming a joint venture in India as the two companies decide to expand a “strategic alliance” that they formed around 18 months ago for engines, SUVs, electric vehicles and connected technologies.
Once a JV is finalised, Ford may decide to cease independent operations in India on the retail, customer-facing front. There is a possibility that Ford merges its India operations into the new venture as jointly developed products and technologies start coming out. However, Ford may still continue to get some imported products through a separate unit.
Sources said the companies are going back to an arrangement similar to 1995 when Ford had partnered M&M for its India foray. While they had gone separate ways in 1998, the recent growing collaboration between the two has prompted them to work out a JV formula once again.
A Ford spokesperson said, “We do not comment on speculation. Ford remains committed to India. On the strategic alliance with Mahindra, teams from both companies continue to work together to develop avenues of strategic cooperation that help us achieve commercial, manufacturing and business efficiencies for the future.”
The JV will also help M&M to venture out in overseas markets.