Ford Motor Company has announced that it has agreed to “explore a strategic alliance” with Mahindra.
The US firm said that the proposed agreement is “designed to leverage the benefits of Ford’s global reach and expertise and Mahindra’s scale in India and successful operating model”.
A joint statement added that the agreement would allow each automaker to “leverage their mutual strengths during a period of unprecedented transformation in the global automotive industry”.
The areas of potential co-operation include mobility programmes, connected vehicle projects, electrification, product development, sourcing and commercial efficiencies, and improving Ford’s reach in India and Mahindra’s reach outside of India.
The proposed collaboration will run for “up to three years”, with any further strategic co-operation decided at the end of that period.
“Our two companies have a long history of co-operation 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,” said Jim Farley, Ford executive vice president and president of global markets, referring to a previous joint venture in India between the two automakers.
“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,” he added.
Pawan Goenka, managing director for Mahindra and Mahindra Ltd, added that the changes facing the automotive industry globally have been “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,” Goenka added.