India will be transferring its Indian operations, including its personnel and
assembly plants in Chennai in Tamil Nadu and Sanand in Gujarat, as well as the
Global Business Services unit, Ford Credit and Ford Smart Mobility to a new
joint venture company which will be formed with Mahindra & Mahindra. The
latter will have a 51pc controlling stake in the JV company, while the
remaining 49 per cent will be with Ford.
& Mahindra Limited and Ford Motor Company have signed a definitive
agreement to create a this joint venture that will develop, market and
distribute Ford brand vehicles in India and Ford brand and Mahindra brand
vehicles in high-growth emerging markets around the world.
joint venture will be valued at Rs 1,925 crore (US$275 million). The joint
venture is the next step in the strategic alliance forged between Ford and
Mahindra in September 2017 and is expected to be operational by mid-2020,
subject to regulatory approvals. The joint venture will be operationally
managed by Mahindra, and its governance will be equally composed of
representatives of Mahindra and Ford.
Ford will continue to own the Ford brand, and its branded vehicles will be
distributed through the current Ford India dealer network. Mahindra will
continue to own the Mahindra brand and operate its own independent dealer
network in India.
joint venture expects to introduce three new utility vehicles under the Ford
brand, beginning with a new midsize sports utility vehicle that will have a
common Mahindra product platform and powertrain.
area of focus for the joint venture will be electric vehicles. Ford and
Mahindra will collaborate to develop vehicles to support the growth of
sustainable mobility across emerging markets.