alued at Rs 1,925 crore, the new partnership between M&M and Ford Motor Company will drive enhanced competitiveness through greater economies of scale across the automotive value chain, including optimized sourcing, product development, use of relevant technologies and building a global network. The partnership will also allow Ford and Mahindra to offer new products to customers faster and deliver profitable growth to both companies.
On this profitable partnership, Anand Mahindra, Chairman, Mahindra Group, said, “Mahindra and Ford together is a testament of cooperation and mutual respect between the two companies. Our combined strengths – Mahindra’s expertise in value-focused engineering and its successful operating model, and Ford’s technical expertise – global reach and access to future technology – are a potent recipe for success. At its core, the partnership will be driven by shared values of both companies, which are focused on caring for our customers, associates, and our communities.”
Adding to this, Jim Hackett, President and CEO, Ford Motor Company, said, “At Ford, our purpose of 116 years has always been to drive human progress, and that won’t change. To continue to do that, we need to evolve with new and faster ways of not only delighting our customers around the world, but also solve the very different needs. Strong alliances like this, play an important role in assuring we continue to achieve our vision, while at the same time, staying competitive and delivering value to our global stakeholders.”
While, this isn’t the first time that M&M and American multinational automaker, Ford Motor Company have joined hands, (the two auto giants had announced a strategic alliance in September 2017, followed by a declaration regarding powertrain sharing and connected car solutions in October 2018), this new joint venture is expected to achieve enhanced efficiencies to strengthen the Ford brand in India. In addition, this partnership will also be a catalyst for growth for the Ford and Mahindra brands in emerging markets, which are presently growing at double the rate of the global industry. Dr Pawan Goenka, Managing Director, M&M, said, “The joint venture will have a distinct product portfolio with shared platforms and powertrains, the newest technology, high quality and engineering standards from both Mahindra and Ford at optimized costs. This winning combination will enable the JV to successfully position its vehicles in India, as well as unlock the potential of other highly competitive emerging markets.”
With the signing of the new definitive agreement, Ford and M&M have decided on the following -
Jim Farley, President, Ford New Businesses, Technology & Strategy, said, “The creation of this JV is a pivotal moment in both our companies’ histories. Strong alliances such as this, will play a crucial role for Ford to profitably compete in the high-volume, affordable vehicle segments which are so popular with our diverse customer base. By combining our respective talents, we will offer more vehicles to customers in more places than ever before, and deliver profitable growth to both Ford and Mahindra.”
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