[achilles101]

Ford likely to end independent India business with new Mahindra deal - sources

https://in.reuters.com/article/us-fo...-idINKCN1RL1SH

Ford Motor Co is nearing a deal with Mahindra & Mahindra to form a new joint-venture company in India, a move that will likely see the U.S. automaker cease independent operations in the country, two sources with direct knowledge of the talks told Reuters.

Under the terms of the deal being negotiated, Ford will form a new unit in India in which it will hold a 49 percent stake, while Mahindra will own 51 percent, the two sources said.
The U.S. carmaker’s Indian unit will transfer most of its current automotive business to the new entity, including its assets and employees, according to one of the sources.

“It’s like a partial exit (for Ford from India),” the source said.

One of the sources said the Ford-Mahindra deal would lead to more affordable Ford cars in the country, as the company would not need to pay any royalty to its global parent, as the Indian unit has to now.

The funds that accrue to Ford’s India unit because of the deal will also be used to clear some of its accumulated losses, the two sources said.

The deal is expected to close within 90 days, the sources said, adding the value of the transaction was not yet clear.

Puneet Gupta, associate director at IHS Markit, said the deal would help Ford and Mahindra launch new models at a faster pace and lower development cost, which is critical to success in a price sensitive market like India.

“It’s a win-win situation for both,” Gupta said.

[kiku007]

September 2017

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.

February 2019

Originally Posted by GTO

To me, it shows a lack of commitment from Ford India. Do they - in the future - want to become a minority stakeholder in a JV with Mahindra? I'm smelling the same thing I did when we heard about Toyota-badged Marutis (IMHO, that's just the first step toward Toyota buying stake in Maruti-Suzuki).

April 2019
NEW DELHI (Reuters) - Ford Motor Co is nearing a deal with Mahindra & Mahindra to form a new joint-venture company in India, a move that will likely see the U.S. automaker cease independent operations in the country, two sources with direct knowledge of the talks told Reuters.

Ford will complete the full circle if they execute this plan. Start with Mahindra 2 decades back; and end with Mahindra.

TechM (Mahindra group company) is a vendor/partner in Ford's IT division. I'd be interested to watch how things move there.

Anyhow, this shouldn't be surprising. Under the new CEO it's cuts everywhere.

https://www.thelocal.de/20190315/for...obs-in-germany

[Ithaca]

Article in today's TOI
Ford may end its solo drive in India

Source: TOI Mumbai