[amvj]

I see this in a different way. Chevrolet initially lied that they will make huge investment in India and eventually they shutdown the operations.

So Ford is trying to divert attention by these statements and want Mahindra to service Ford vehicles in the future for an easy exit from this market ?

[GTO]

Originally Posted by CrAzY dRiVeR

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.

True and I believe Pawan Goenka also went on record with that statement.

Not very sure how Ford benefitted from that alliance!

Debut in a new country with low risk & investment (via Mahindra's existing facilities).

Originally Posted by kiku007

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

Originally Posted by amvj

So Ford is trying to divert attention by these statements and want Mahindra to service Ford vehicles in the future for an easy exit from this market ?

Guys, let's not make premature assumptions. There is a world of difference between the situation of Chevrolet in India and Ford. Ford has far better brand value and has products that sell (including the EcoSport & Endeavour). Just because Ford is also American doesn't mean they'll pull out like GM did.

[nikipedia87]

On a lighter note, it will be Ford's Endeavour not to rename its flagship Indian SUV as EUV700 after this alliance comes to fruition.

(Pun intended)

[jayram.r]

Originally Posted by Vish_Janu

As a potential near-future Ford Ecosport buyer, this lays many of my doubts to rest concerning the brand in the Indian market.

I would be wary of the same. Quality could take a backseat for Ford in quest for higher reach & parts sharing. Could be M&Ms gain though on improved reliability

[Yasasri]

Originally Posted by kiku007

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.

Sir,
Probably this could the first step in that direction.?? But having invested in two plants and a couple of Research Centres can they really think of such a move?

[ampere]

This seems some what like what Tata and Fiat had to some extent. We can expect more Ford vehicles and services in Tier-II cities thanks to M&M presence. But how much its going to help in the long run, at least I am not very sure.

[GTO]

Originally Posted by ampere

This seems some what like what Tata and Fiat had to some extent.

IIRC, Ford has over 300 dealerships in India. They don't need a tie-up with Mahindra for servicing. I don't think they would either as Mahindra isn't the last word in after-sales quality. Plus, such sharing isn't easy - supplying parts, training technicians etc. It'll be like a solution to a problem that doesn't exist.

[haneeshN]

Originally Posted by GTO

IIRC, Ford has over 300 dealerships in India. They don't need a tie-up with Mahindra for servicing. I don't think they would either as Mahindra isn't the last word in after-sales quality. Plus, such sharing isn't easy - supplying parts, training technicians etc. It'll be like a solution to a problem that doesn't exist.

I agree with you, I don't think the focus will be on sharing the dealership network. I think this partnership will mainly focus on sharing the tech, the EV strategy and Mahindra's global reach. Electric Vehicles are the future and this partnership might focus more on this considering Mahindra's existing presence in this field plus Ford also has few hybrid models globally.

[GTO]

Originally Posted by GTO

Shows how you can use 1,000 words to write a fancy press release...and yet say nothing at all.

Taking a cue from such a lame press release, the Economic Times writes a long news article that says nothing at all .

Seriously, what the heck are they writing?

Why M&M-Ford alliance makes sense, and how Maruti Suzuki could soon be at risk

[RaghuVis]

Originally Posted by GTO

Seriously, what the heck are they writing?

The best line among them was this
" Within the past four months alone, two of the world's largest auto companies, Volkswagen AG and General Motors Co., decided the competition was too tough and backed away from India."
VW left India and did not bother to even tell anyone?

[Reinhard]

I still don't see the reason for a company like Ford to enter into a "partnership".
They are very big, have a good reputation in India. And most importantly, they bring pretty fresh, capable & modern vehicles with nice innovations to India. They will always perform best when on their own in my opinion. Big guns like this one can rarely work in a peer-to-peer relationship. They are better of alone or taking over local brands.

The case with GM was different. They may be big. But barring Captiva, Cruze, most of their other products were basic, economy grade Korean cars that people rejected. Their half hearted commitment to the market was evident in their product portfolio. And then the pollution-gate where many of their cars were not compliant with the rules of the land put them into a fall from which they couldn't recover. I'm glad the people kicked GM bad for the cheating.

Originally Posted by sgiitk

All biggies are looking at India as a future market and source.

It may be true - but in most cases, this doesn't reflect exactly in the products that these biggies are bringing to India yet though. Mostly older generation cars, stripped from their flagship features or quality.

They are treating India as a very convenient place to make plenty money with minimal investment in R&D and to reuse old designs and die designs that have been phased out in primary markets.

Ford thankfully is pretty much an exception to that.

[volkman10]

M&M dealers may soon get mini Ford outlets.

American carmaker Ford, the eighth largest player in domestic car market, will use its partner M&M's retail network strength to reach out to more consumers in smaller cities and towns that are not serviced by the brand. Ford is likely to offer mini small format sales service outlets to M&M dealers to expand its reach.

Ford is said to be getting ready to open at least 25 small format sales service outlets with Mahindra dealers in markets where it does not have a presence.

a dealer for M&M said a lot of thought will go into this distribution arrangement so that Ford is able to get benefit out of M&M's strength. "There is also a possibility that Ford cars might be displayed inside M&M's showrooms. Multiple formats could be there

link

[agambhandari]

Originally Posted by volkman10

M&M dealers may soon get mini Ford outlets.







link

While this could be nice for most ford cars, if I were running Mahindra I wouldn't let a car other than the Endeavour or Mustang stand in my showrooms.

Simple reasons, they have direct competing products against each other in the EcoSport vs TUV, Figo vs KUV. Infact even the Rexton is coming soon for the high end segment. And yes, the strengths of both companies lie in totally different directions Driver focussed vs Comfort/Space competition is still competition.

Service on the other hand makes a lot of sense, Mahindra outlets get to earn more while Ford can get value out of a larger available service network.

[volkman10]

M&M, Ford India May Firm Up JV Pact By Month-end.

They are likely to share vehicle architecture, electric powertrains, common sourcing and leverage each other’s distribution network in the first phase,

Mahindra & Mahindra is likely to share its utility vehicle platform with Ford for a C-Segment SUV codenamed W601, which is a new-generation XUV, whereas Mahindra & Mahindra will get access to Ford’s B562 platform for an electric sedan that it plans. Coming together is expected to help shave the development timeline.

A mid-sized SUV is a critical gap in Ford India’s portfolio between the EcoSport and Endeavour, whereas Mahindra will need new-generation architecture to address the electric vehicle (EV) sedan portfolio for the future,

At Ford, the belief is that the cost structure of Mahindra is a significant 12-14% lower than at Ford. The company already has got access to the cost structure at the vendors’ end and have requested them to come out with ways on which Ford can source parts at lower cost

Link

[AJITHAAA]

The best deal for Mahindra would be Ford saying 'We will do all the design and you do all the manufacturing'.