Mahindra, Ford in new deal to make midsize SUVs in India
18 April 2019
Mahindra and Mahindra Ltd and Ford Motor Co have signed a deal to jointly develop midsize sports utility vehicles in India, the two companies stated on Thursday.
Ford and its affiliate companies will invest Rs680 crore for co-development of the vehicle over a period of 10 years, as per a joint statement.
The new agreement the strategic alliance formed by the two companies in September 2017, which was followed by an announcement on powertrain sharing and connected car solutions in October 2018.
"I am happy with the significant progress we have made and synergies we have created since the announcement of our strategic alliance with Ford in 2017. Today's announcement is another significant step in the collaboration between our two companies. Having identified several areas for joint development, both companies will continue to work together to develop products using common product platforms. This will reduce product development costs and gain economies of scale for both companies," Pawan Goenka, managing director, M&M, said.
"With today's announcement, we not only strengthen our ongoing partnership with Mahindra but also sharpen our competitiveness in an important emerging market like India," said Jim Farley, president of Ford New Businesses, Technology & Strategy. "Ford's technological leadership combined with Mahindra's successful operating model and product prowess will surely help us deliver a vehicle that will meet the expectations of customers in India and emerging markets"
The agreement will help both the companies leverage benefits in terms of Ford's global reach and expertise and Mahindra's scale and successful operating model in India. Teams from both the companies will continue to collaborate on all areas of mutual interest, including electrification, distribution and product development, the release added.
Earlier this fiscal year, the alliance signed an agreement with Mahindra Group to develop and supply a low-displacement petrol engine for use in Ford's present and future vehicles, beginning in 2020. Mahindra and Ford also announced joint development of a telematics control unit.