Mahindra Group and Ford Motor Company have signed an agreement, strengthening their existing alliance in India, to co-develop a new mid-sized sports utility vehicle (SUV). This new agreement strengthens the alliance between the two companies that was initially penned in September 2017. Mahindra and Ford also announced in October 2018 that they would work together on the development of powertrains and connected car solutions. In addition, Mahindra also signed an agreement to develop and supply a low-displacement petrol engine to Ford in 2020.
The new SUV will be primarily for India along with some emerging markets which the two brands would like to enter with this particular SUV establishing a benchmark in the process. The SUV will be based on a Mahindra platform and powertrain, due, in all probability, to Mahindra’s vast existing manufacturing set-up in the country. The benefits of this alliance would be for Mahindra’s large scale operations in India and Ford’s huge global reach, and both companies will collaborate with each other in regards to distribution and development.
Pawan Goenka, Managing Director, Mahindra and Mahindra, said, “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.”
In turn, Jim Farley, president of Ford New Businesses, Technology & Strategy stated, “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. 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 as well as other emerging markets.”
Also read: Mahindra Group and Ford Motor Company Strengthen India Alliance
