Mahindra Group and Ford Motor Company have agreed to explore a strategic alliance, designed to leverage the benefits of Ford's global reach and expertise and Mahindra's scale in India and successful operating model.
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. The areas of potential cooperation include:
Mobility programs
Connected vehicle projects
Electrification
Product development
Sourcing and commercial efficiencies
Distribution within India; improving Ford's reach within India
Global emerging markets; improving Mahindra's reach outside of India.
Teams from both companies will collaborate and work together for a period of up to three years. Any further strategic cooperation between the two companies will be decided at the end of that period.
"Ford is committed to India and this alliance can help us deliver the best vehicles and services to customers while profitably growing in the world's fifth largest vehicle market," said Jim Farley, Ford executive vice president and president of Global Markets.
"Our two companies have a long history of cooperation and mutual respect. 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, MD, 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."
END
