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Old 18th September 2017, 14:58   #1
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Cool Mahindra and Ford to explore strategic cooperation in India & other markets

Mahindra Group and Ford Motor Company today 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:

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, managing director, 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.”

Mahindra has been leading the utility vehicles segment in India for the past seven decades. The spirit of ingenuity has driven Mahindra to be amongst the few global companies pioneering the development of clean and affordable technology, and is the only player with a portfolio of electric vehicles commercially available in India. Expanding its global presence, Mahindra owns majority stake in Ssangyong Motor Company in Korea, has forayed into the shared mobility space with investments in ride sharing platforms in the USA, and is developing products like the GenZe - the world’s first electric connected scooter.

Ford was among the first global automakers to enter India in 1995. Now one of the largest exporters of cars from the country, Ford manufactures and exports vehicles and engines from its manufacturing facilities in Chennai, Tamil Nadu and Sanand, Gujarat. India is also the second-largest Ford employee base globally, with more than 14,000 people working across the Ford India or Global Business Services operations in New Delhi, Chennai, and Coimbatore.

Link To News : Mahindra and Ford to Explore Strategic Cooperation to Drive Profitable Growth in India and other Emerging Markets

Last edited by ampere : 18th September 2017 at 20:24.
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Old 18th September 2017, 15:23   #2
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This is encouraging news for the prospective customers. Especially after all the talks of Ford's uncertain future in India. Now with Fords Global VP making a strong statement about being committed to India, a lot of fears should be laid to rest.

Last edited by GTO : 19th September 2017 at 10:17. Reason: typo
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Old 18th September 2017, 15:28   #3
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Default re: Mahindra and Ford to explore strategic cooperation in India & other markets

AGAIN!

So Ford finally decide for another fresh start with them Mahindras, hope it works out well for both the parties involved.

Does it also include sharing production facility?
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Old 18th September 2017, 17:45   #4
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Default re: Mahindra and Ford to explore strategic cooperation in India & other markets

Could they have been a bit more specific? I read the entire press release and still can't figure out what they plan to "cooperate" on.

Looks like they've just shaken hands, hoping to work together on something in the future . Shows how you can use 1,000 words to write a fancy press release...and yet say nothing at all.

Quote:
Originally Posted by speedem0n View Post
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
So they are tentatively including everything to do with cars (developing, selling, vendors, future tech etc.), but WHICH is the area of focus? And what are they going to achieve in just 3 years? Considering both the companies still don't know how they're going to work together, it seems like 1 - 1.5 years will just go in finalising that.
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Old 18th September 2017, 18:54   #5
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Default re: Mahindra and Ford to explore strategic cooperation in India & other markets

As a potential near-future Ford Ecosport buyer, this lays many of my doubts to rest concerning the brand in the Indian market.
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Old 18th September 2017, 21:03   #6
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Default re: Mahindra and Ford to explore strategic cooperation in India & other markets

Quote:
Originally Posted by GTO View Post
Could they have been a bit more specific? I read the entire press release and still can't figure out what they plan to "cooperate" on.
Nothing as of now, they have just decided to "Explore"

Quote:
Originally Posted by speedem0n View Post
Mahindra Group and Ford Motor Company today agreed to explore a strategic alliance,
This "date" is planned for 3 years after which....


Quote:
Originally Posted by speedem0n View Post
Any further strategic cooperation between the two companies will be decided at the end of that period.
PS: Why do I feel Mahindra will again gain more than Ford??
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Old 18th September 2017, 22:07   #7
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Default re: Mahindra and Ford to explore strategic cooperation in India & other markets

To be honest, this looks to me as if I'm reading a photo-shopped news article about a Tata-VAG "partnership". We can have a snap "spot the differences quiz" about these two news after some months if the end of the partnership is also the same!

One more where I don't see any gain for either party at all. For a partnership with a large company like Ford, the partner has to be either a peer in capability but no market share in that geographic area (like Renault-Nissan) or a very low level player with niche business with low cost suppliers & economical labour with good infrastructure (a-la Suzuki-Maruti / Mercedes-Force to some extent). In a scenario like this - Ford & Mahindra - both are fighting with each other in a way for market share.

This partnership has no meaning at all in the cruel business world. Neither will want to share stuff and end up helping the other.
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Old 18th September 2017, 22:57   #8
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Default re: Mahindra and Ford to explore strategic cooperation in India & other markets

Looks like after they placed "everything on the table," Ford honchos picked up the envelope with "strategic co-operation" written on it.

Last edited by smartcat : 18th September 2017 at 23:04.
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Old 19th September 2017, 02:14   #9
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Default Ford and Mahindra announce new strategic alliance!

Jim Hackett seems to be India friendly!

Ford announces strategic partnership with former ally Mahindra and Mahindra to jointly pursue development initiatives. The alliance aims to explore future mobility, connected vehicles and electrification programmes. Limited to 3 years for now, the partnership will be subject to further review at the end of the term.

The alliance will enable Ford to leverage Mahindra's local reach in India, and also allow the Indian manufacturer some global outreach as it seeks to expand in the US with the upcoming Tech Center in Michigan, home state of the Dearborn based Ford.

Source: ET article:
Quote:
Pawan Goenka, Managing Director, Mahindra and Mahindra Ltd said the changes facing the automotive industry globally are triggered by the accelerated rise of new technologies, sustainability policies and new models of shared mobility.

"Given these changes Mahindra sees the need to anticipate new market trends, explore new 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,” said Goenka.
Another source: Bloomberg article
Quote:
The development is an about face for Ford after previous Chief Executive Officer Mark Fields had put the business in India under review. Jim Hackett, who became CEO after Ford’s board ousted Fields in May, has now found a way to stay in India while sharing costs with Mahindra on product development and sourcing. In May, GM announced it was stopping sales in the Indian market.

“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.

The India plan is one of the most significant Ford has made in the first four months under Hackett, who had said he would conduct a 100-day review of Ford’s business. The former CEO of office furniture maker Steelcase Inc. is scheduled to lay out his strategy to investors on Oct. 3 in New York.

Kindly merge into the Ford-Mahindra manufacturing partnership rumour thread if necessary. I felt it deserved a new thread since this isn't about a manufacturing alliance.

Last edited by Harshal.Bhosale : 19th September 2017 at 02:25.
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Old 19th September 2017, 05:53   #10
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Mahindra already had this collaboration before. We saw the air con vents and other bits and pieces of the then ford escort in Mahindra Bolero.
Good for some tech transfer but should not go the TATA Fiat way.
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Old 19th September 2017, 07:06   #11
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Default Re: Ford and Mahindra announce new strategic alliance!

Looks like the alliance for now is just exploratory in nature. After all that's all one can achieve in 3 years. The amount of effort required to just get, joint teams across 2 organisations with their own internal projects/priorities as well as varied cultures, by itself is a big task.

I hope they release more detailed info on the actual goals/deliverables of this alliance. Will their be platform sharing, parts sourcing or distribution synergies ?

The Indian auto market is so monopolistic ( with the large heard going for Maruti and then Hyundai ) - that every other player needs to think on these lines to make its existence relevant. On top of it, disruption like EVs, connected mobility, driverless cars etc ! Interesting next 15 years ahead for the Indian auto industry.
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Old 19th September 2017, 07:23   #12
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Default Re: Ford and Mahindra announce new strategic alliance!

I believe Mahindra would not have made the Scorpio, if not for the earlier alliance with Ford. Making the Escort for Ford taught them a lot about modern manufacturing processes. Not very sure how Ford benefitted from that alliance!

This time again - I see more benefits for Mahindra rather than Ford!
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Old 19th September 2017, 08:18   #13
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Default Re: Ford and Mahindra announce new strategic alliance!

This comes after we heard about Mahindra's plan to bring electric SUVs into the market. And since this cooperation seems to include electric vehicle development, a connection seems possible.
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Old 19th September 2017, 08:58   #14
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Default re: Mahindra and Ford to explore strategic cooperation in India & other markets

Is this Ford's way of slowly giving away it's Chennai manufacturing facility to Mahindra without ruffling feathers?

I can't find any other reason, Ford can benefit from Mahindra. Mahindra of course can benefit from learning a thing or two about making good cars.
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Old 19th September 2017, 09:07   #15
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Default re: Mahindra and Ford to explore strategic cooperation in India & other markets

Mahindra with the erstwhile Indian brand Reva under its belt and Ford make a natural pair. All biggies are looking at India as a future market and source.
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