Mahindra and Ford to Explore Strategic Cooperation to Drive Profitable Growth in India and Other Emerging Markets
September 18 2017 - 5:30AM
Business Wire
- Collaboration strengthens Ford’s
commitment to India, while facilitating Mahindra’s expansion into
other emerging global markets
- Mobility, electrification and product
development are key areas of potential cooperation
Mahindra Group and Ford Motor Company 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 between the two companies will allow each to
leverage their mutual strengths during a period of unprecedented
transformation in the global automotive industry. The areas of
potential cooperation include:
- Mobility programs
- Connected vehicle projects
- Electrification
- Product development
- Sourcing and commercial
efficiencies
- Distribution within India; improving
Ford’s reach within India
- Global emerging markets; improving
Mahindra’s reach outside of India
Teams from both companies will collaborate and work together for
a period of up to three years. Any further strategic cooperation
between the two companies will be decided at the end of that
period.
“Ford is committed to India and this alliance can help us
deliver the best vehicles and services to customers while
profitably growing in the world’s fifth largest vehicle market,”
said Jim Farley, Ford executive vice president and president of
Global Markets.
“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. 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.”
Dr. Pawan Goenka, managing director, Mahindra and Mahindra Ltd
elaborated: “The changes facing the automotive industry globally
are triggered by the accelerated rise of new technologies,
sustainability policies and new models of urban shared mobility.
Given these changes we see the need to anticipate new market
trends, explore alternatives and look for ways to collaborate even
as we compete and build powerful synergies that will allow rapid
exploitation of the exciting new opportunities. Today’s
announcement builds on the foundation laid through our past
partnership with Ford and will open opportunities for both of
us.”
Mahindra has been leading the utility vehicles segment in India
for the past seven decades. The spirit of ingenuity has driven
Mahindra to be amongst the few global companies pioneering the
development of clean and affordable technology, and is the only
player with a portfolio of electric vehicles commercially available
in India. Expanding its global presence, Mahindra owns majority
stake in Ssangyong Motor Company in Korea, has forayed into the
shared mobility space with investments in ride sharing platforms in
the USA, and is developing products like the GenZe - the world’s
first electric connected scooter.
Ford was among the first global automakers to enter India in
1995. Now one of the largest exporters of cars from the country,
Ford manufactures and exports vehicles and engines from its
manufacturing facilities in Chennai, Tamil Nadu and Sanand,
Gujarat. India is also the second-largest Ford employee base
globally, with more than 14,000 people working across the Ford
India or Global Business Services operations in New Delhi, Chennai,
and Coimbatore.
About Mahindra
The Mahindra Group is a USD 19 billion federation of companies
that enables people to rise through innovative mobility solutions,
driving rural prosperity, enhancing urban living, nurturing new
businesses and fostering communities. It has a leadership position
in utility vehicles, information technology, financial services and
vacation ownership in India and is the world’s largest tractor
company, by volume. It also enjoys a strong presence in
agribusiness, components, commercial vehicles, consulting services,
energy, industrial equipment, logistics, real estate, steel,
aerospace, defence and two wheelers. Headquartered in India,
Mahindra employs over 200,000 people across 100 countries.
Learn more about Mahindra on www.mahindra.com / Twitter and
Facebook: @MahindraRise
About Ford Motor Company
Ford Motor Company is a global company based in Dearborn,
Michigan. The company designs, manufactures, markets and services a
full line of Ford cars, trucks, SUVs, electrified vehicles and
Lincoln luxury vehicles, provides financial services through Ford
Motor Credit Company and is pursuing leadership positions in
electrification, autonomous vehicles and mobility solutions. Ford
employs approximately 203,000 people worldwide. For more
information regarding Ford, its products and Ford Motor Credit
Company, please visit www.corporate.ford.com.
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