Ford and Mahindra have recently called off their proposed automotive join venture. Ford confirms that its independent operations in India will continue as is. The first product under the new JV was the C-SUV, which will be sold under the Ford nameplate. It was reported that the Ford C-SUV and the EcoSport Turbo with Mahindra’s mStallion engine will be launched, as both products are already in development.
However, new reports claim that the launch of the new Ford C-SUV and the EcoSport Turbo have been put on hold. Ford Motor has frozen all projects it was working on with Mahindra & Mahindra. The company is finalising its new India strategy.
Ford could be working on a new relationship with Mahindra or ending the relationship and related vehicles completely, said one of the sources in development. Ford will have to make a decision in about a month on whether to proceed with Mahindra in a different form or not. The JV had planned to develop at least 3 SUVs for India and emerging markets.
It was speculated that the tie-up with Mahindra would have given Ford a better chance against rivals. This JV will allow Ford to launch new vehicles faster, at reduced costs and with lower investment. The report further claims that “Ford is weighing all programmes it had planned for the joint venture with Mahindra and will review which ones it plans to keep from a profit standpoint.”
The most important product was the Ford C-SUV, which is a mid-sized SUV based on the new-gen Mahindra XUV500. The new XUV500 is based on the new front-wheel-drive monocoque platform. The SUV is scheduled to be launched in the mid-2021. The Ford C-SUV was planned to be launched in 2022. The company was aiming to sell around 50,000 units annually in India.
Mahindra has asked suppliers to freeze work on the new C-SUV. Ford Motor Company is also negotiating new terms, including costs, for an engine Mahindra was to supply for EcoSport SUV. The Ford EcoSport was planned to be equipped with Mahindra’s 1.2-litre mStallion turbocharged petrol engine, which is capable of producing 130bhp and 230Nm of torque. The JV was also planned to launch two new SUVs in 2023 and 2024.
Source – Reuters
