Advertisement
Wednesday, Oct 27, 2021
Outlook.com
Outlook.com

Ford India And Mahindra Looking To Enter Into Joint Venture

Mahindra will own a 51 per cent stake in Ford’s India business if the deal goes through

Ford India And Mahindra Looking To Enter Into Joint Venture
Ford India And Mahindra Looking To Enter Into Joint Venture
outlookindia.com
2019-10-01T14:20:42+05:30

This would not be the first JV between the two companies.

  • The deal does not include Ford’s global business or export-focused engine plant in Sanand.

  • Ford will continue to exist in India and its showrooms and dealerships will continue to function as such.

  • No official word from the two companies yet as deal negotiations are still underway.

  • According to reports, Ford is planning to enter its India business into a joint venture with Mahindra. This is not the first time reports of Ford and Mahindra’s partnership have emerged. Previously, the two carmakers entered into a JV to develop electric vehicles and a small SUV,  as well as share engines.

    However, reports indicate that Ford is looking to partner with Mahindra across the board on its India operations in the new joint venture. This deal will not include Ford’s global business or an engine plant in Sanand, Gujarat, from where engines are exported.

    This joint venture would allow Ford to insulate itself from the expenses of operating in the Indian market. For Mahindra, this would be an opportunity to expand into urban markets, something the Indian carmaker has been trying to do with its recent products such as the Alturas G4 and XUV300.

    If the deal does go through, Mahindra is expected to hold a 51 per cent majority stake in the venture but Ford will have equal voting rights and board representation. There are still chances that the deal might not work out as nothing has been set in stone, however, the JV will likely be announced to the public in the coming days.

    It is important to note that this deal in no way means Ford is exiting the Indian market, as GM did a couple of years ago. It will continue to have a presence in the Indian market in the form of dealerships and service centres, which will fall under the purview of the new joint venture entity, the report states. 

    Neither Ford nor Mahindra have confirmed any details of the joint venture at the time of this story being published. Stay tuned to Cardekho.com for more updates on the same.


    Source: cardekho.com

    Advertisement

    Outlook Newsletters

    Advertisement
    Advertisement
    Advertisement

    Read More from Outlook

    Bombay High Court Adjourns Aryan Khan's Bail Application Till Tomorrow

    Bombay High Court Adjourns Aryan Khan's Bail Application Till Tomorrow

    Former Attorney General of India (AGI) Mukul Rohatgi appeared for Shah Rukh Khan’s son Aryan Khan, along with his existing legal counsel comprising Satish Manishinde and Amit Desai.

    Explainer | Why A Lawyer Is Seeking FIR Against NCB's Wankhede For 'Extortion' In Aryan Khan Drugs Case

    Explainer | Why A Lawyer Is Seeking FIR Against NCB's Wankhede For 'Extortion' In Aryan Khan Drugs Case

    On Monday, a lawyer approached the Mumbai police with a complaint seeking registration of an FIR against Sameer Wankhede and five others for extortion in the drugs-on-cruise case.

    IPL Controversy: CVC Capital Under BCCI Scanner

    IPL Controversy: CVC Capital Under BCCI Scanner

    The BCCI on Monday named RPSG Ventures Limited and Irelia Company Pte Ltd. (CVC Capital Partners) as owners of the new IPL teams from 2022.

    'TMC & AAP On A Mission To Split Congress Votes And Help BJP In Goa': State Congress Chief

    'TMC & AAP On A Mission To Split Congress Votes And Help BJP In Goa': State Congress Chief

    Goa Congress president Girish Chodankar strongly asserted that the voters cannot be wooed with false promises and money as people are deeply rooted in the Congress.

    Advertisement