The strategic cooperation is for product development, electric vehicles and distribution. With this collaboration Ford hopes to improve its reach in India, while Mahindra will be looking at expansion in to other emerging markets globally. According to the official statement, 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.”
Apart from this, Ford and Mahindra will also be working together on connected vehicle, electric-mobility, new product development and sourcing and commercial efficiencies. Ford hopes to benefit from Mahindra’s low cost manufacturing and wide distribution network; while Mahindra will get access to Ford’s vast R&D resources and new-age technologies. This agreement is for three years and at the end of that period the companies will decided whether they would be extending the agreement further.
Commenting on the collaboration, Jim Farley, Ford Executive Vice President and President of Global Markets, said, “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.”
