American automaker Ford Motor Company and home-grown UV maker Mahindra & Mahindra has announced to form a new joint venture. The new JV will produce, market and sell Ford cars in India. The Joint Venture is expected to be operational in 2020, and the first product from the JV is likely to arrive in the second half of 2020 or early 2021. Here are 5 big things that you need to know about the new Mahindra and Ford joint venture –
Mahindra 51 Percent control stake – In the joint venture, Mahindra will have 51 percent controlling stakes and Ford will control 49 percent stake. Both makers will have equal representations on the board, while the chairman will be elected by Mahindra.
3 New SUVs – It is also confirmed that the new JV will introduce 3 new utility vehicles, which will be sold under Ford nameplate. The first model will be an all-new C-SUV, which will be based on the Mahindra W601 – the next-gen Mahindra XUV500. Adding to it, the new Mahindra-Ford Company is also expected to develop 2 more compact SUVs for India.
7 New Cars including electric vehicles – In total, the Joint Venture will produce 7 all-new cars including SUVs and electric models. The new venture will focus on electric vehicles. The companies will collaborate to develop electric cars for India as well as emerging markets. Mahindra will also launch the re-badged Ford Aspire with an electric powertrain.
Ford & Mahindra cars will be sold via their respective dealerships – The new joint venture will be responsible for growing the Ford brand in India and exporting products to Ford entities globally. It is also confirmed that there will be no joint badging, and both brands will sell vehicles via their respective dealerships.
Ford to transfer its India operation to the JV – It is official that Ford Motor Company will transfer its India operation to the new joint venture. The company will transfer its personnel and production plans in Chennai and Sanand. However, Ford will continue to have full stakes on engine plant in Sanand as well as Global Business Services unit, Ford Credit and Ford Smart Mobility.