Ford and Mahindra to join hands to form a new company in India
Ford Motor Company is likely to cease its independent operations in the Indian market
Ford Motor Company is all set to enter into a deal with Mahindra & Mahindra to form a new joint-venture company in India. With this announcement, the U.S. automaker is most likely to cease its independent operations in the country. According to the Reuters, Ford will form a new unit in India with 49 per cent stake and India’s Mahindra will own 51 percent.
Ford India will transfer most of its current automotive business to the newly created entity, including its assets and employees. Two of the company’s spokespersons revealed the details on condition of anonymity because of the sensitivity of the matter. Ford is yet to make an official announcement on the same, but claimed that the companies continue to work together “to develop avenues of strategic cooperation that help us achieve commercial, manufacturing and business efficiencies”. Also See – Ford C-SUV (Tata Harrier Rival) – What we know so far
Even Mahindra choose not to comment on speculation. The company said in a statement it was “working together in identified areas” with Ford after a 2017 partnership arrangement, and “will announce further definitive agreements as we progress on some of the other areas.” Also See – Ford Figo vs Maruti Swift
Currently, Ford manufactures and sells its cars in India through its wholly-owned subsidiary. Ford and Mahindra have entered into strategic alliance to build new cars together including SUVs and electric cars. Ford is working on a C-SUV, which will be based on the next-generation Mahindra XUV500. Moreover, the companies are in talks of developing a new B-segment SUV.
Video – Ford Freestyle Review
Source – Reuters
