Ford Sets Up Joint Venture With Mahindra
October 01 2019 - 08:12AM
Dow Jones News
By Patrick Thomas
Ford Motor Co. said it will transfer most of its operations in
India to Mahindra & Mahindra Ltd. as part of a joint venture
with the Indian auto maker.
The company expects to book an $800 million to $900 million
noncash charge related to the establishment of the joint venture in
the third quarter, it said in a regulatory filing Tuesday.
Mahindra, one of India's largest auto makers, will own 51% of
the venture and Ford 49%. The companies value the venture at about
$275 million.
Ford said it will transfer most of its operations in the
country, including its personnel and assembly plants in Chennai and
Sanand.
Ford said it will retain its engine plant operations in Sanand
as well as the Global Business Services unit, Ford Credit and Ford
Smart Mobility.
The Dearborn, Mich., company said the joint venture is the next
step in its alliance with Mahindra and said the venture is expected
to be operational by mid-2020.
Ford and Mahindra agreed to a three-year partnership in 2017 to
explore potential areas of collaboration on new technologies and
retail sales.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
(END) Dow Jones Newswires
October 01, 2019 07:57 ET (11:57 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Ford Motor (NYSE:F)
Historical Stock Chart
From Feb 2024 to Mar 2024
Ford Motor (NYSE:F)
Historical Stock Chart
From Mar 2023 to Mar 2024