Ford Motor Co. and India-based Mahindra Group today agreed to explore a strategic alliance designed to leverage the benefits of Ford’s global reach and expertise and Mahindra’s scale in India and successful operating model. The agreement will allow each company to leverage their multiple strengths as the automotive industry continues to evolve.
“Our two companies have a long history of cooperation and mutual respect. The memorandum of understanding we have signed today with Mahindra will allow us to work together to take advantage of the changes coming in the auto industry,” says Jim Farley, Ford’s executive vice president and president of global markets. “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.”
Areas of potential cooperation include:
- Mobility programs
- Connected vehicle projects
- Product development
- Sourcing and commercial efficiencies
- Distribution within India; improving Ford’s reach within India
- Global emerging markets; improving Mahindra’s reach outside of IndiaTeams from both companies will collaborate and work together for a period of up to three years. Any further strategic cooperation will be decided at the end of that period.
In 1995, Ford was among the first global automakers to enter India, and it now manufactures vehicles and engines from its facilities in Chennai, Tamil Nadu, and Sanand, Gujarat. India is also Ford’s second largest employee base globally, with more than 14,000 people working across the Ford India or Global Business Services operations in New Dehli, Chennai, and Coimbatore.