- Marks a new era of collaboration, using the strengths of both companies to deliver operational excellence and value to stakeholders
- The partnership will allow Ford and Mahindra to offer new product to customers faster than before and will deliver profitable growth to both companies
- Valued at INR 1,925 crores (US$275 million), the joint venture will drive enhanced competitiveness through greater economies of scale across the automotive value chain, including optimized sourcing, product development, use of relevant technologies and a global network
MUMBAI, India & NEW DELHI--(BUSINESS WIRE)-- Mahindra & Mahindra Limited and Ford Motor Company have signed a definitive agreement to create a 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.
Mahindra and Ford will form a joint venture, with Mahindra owning a 51 percent controlling stake and Ford owning a 49 percent stake. Ford will transfer its India operations to the joint venture, including its personnel and assembly plants in Chennai and Sanand. Ford will retain the Ford engine plant operations in Sanand as well as the Global Business Services unit, Ford Credit and Ford Smart Mobility.
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.
The joint venture will be responsible for growing the Ford brand in India and exporting its products to Ford entities globally. 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.
See more from Benzinga
- A Peek Into The Markets: US Stock Futures Rise Ahead Of Manufacturing Data
- Beyond Indica And Sativa: Leafly Launches Graphic Platform For Identifying Cannabis Strains
- 58 Biggest Movers From Yesterday
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.