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Old 27th September 2019, 14:39   #241
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Default re: Ford to end independent operations in India; will hold 49% in JV with Mahindra

Was extremely excited when I came to know about Figo's 6 Speed AT option with the sweet 1.5L Dragon engine. Sad part was that almost no review exists online and no dealer had any stock, now Ford wants to move away from India!

Would have been an amazing ride for my needs, sad to see Ford give up when new players want a share in every possible segment including electric.
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Old 27th September 2019, 15:18   #242
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Quite frankly I am bemused that most people are taken aback by this move by Ford. Its no secret that Ford has been struggling with its international operations for the past couple of years. Its financial results are being dragged down by losses in the international operations. As early as January 2019, Ford announced that it will go through a global redesign of the company. In addition to detailing the major changes it would make to its product portfolio in the U.S., it detailed what was to happen in Europe, China and South America. Curiously, South Africa and India were absent from the detailing. However, looking at what was happening in China and South America one could guess quite accurately what was coming our way.
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Old 28th September 2019, 01:48   #243
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Default re: Ford to end independent operations in India; will hold 49% in JV with Mahindra

How did Ford actually fail?

Wanted to open a new thread on this topic but I think it belongs here given the news. Ford, unlike GM did have good products and were priced fairly. In the last 10 to 12 years or so, except for the 2nd gen fiesta, weren't most of their models well received? 1st Gen Fiesta, Figo, Aspire, Endeavour and even Freestyle now. So where exactly did they fail? Or is it just that they failed to capture the public's attention inspite of having a good lineup?
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Old 28th September 2019, 07:46   #244
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Ford's ride & handling package and Mahindra's powerful engines.

But Suppose the Child Inherited My Beauty and Your Brains? .
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Old 28th September 2019, 17:13   #245
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Default re: Ford to end independent operations in India; will hold 49% in JV with Mahindra

Quote:
Originally Posted by CrAzY dRiVeR View Post
This statement is as old as the forum. I'm not kidding, you can find threads from the founding year stating that the company is likely to exit from the Indian market. People said it again when the FIAT-TATA alliance came up, when the alliance failed, when the sales again went to nothing post independent operations, and now again once when Jeep sales have reduced.
As I said colour me pessimistic. We were considering buying a Ford Escort (called Mahindra Ford then) in the nineties. And one fine day Ford exited and many Escort owners I knew were gnashing their teeth in anger.

And then, to top it off, my family's experience after owning a Fiat (still with me) has been anything but than pleasant. The Tata Fiat tie up was absolutely nightmarish in terms of after sales.

Anyway time will tell. But I won't touch a FCA or Ford vehicle for sure.
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Old 28th September 2019, 19:31   #246
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Default re: Ford to end independent operations in India; will hold 49% in JV with Mahindra

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Originally Posted by RMN View Post
How did Ford actually fail?

Wanted to open a new thread on this topic but I think it belongs here given the news. Ford, unlike GM did have good products and were priced fairly. In the last 10 to 12 years or so, except for the 2nd gen fiesta, weren't most of their models well received? 1st Gen Fiesta, Figo, Aspire, Endeavour and even Freestyle now. So where exactly did they fail? Or is it just that they failed to capture the public's attention inspite of having a good lineup?

Bad image is one of the main reasons. Fellow American manufacturer GM exiting also did no help the company.
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Old 28th September 2019, 20:58   #247
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How many models of Ford by Mahindra before the royalty agreement comes to its natural end? My guess is about 3 models over 5 or 6 years.

Alternatively Mahindra may also gain some footing in North or South American markets where Ford is present as a result of this alliance.

Most likely no South East Asian Ford models or power trains will reach India as well. The Euro 6 2.0 Diesel powering the Endeavour in those markets is all new as per my understanding and is the perfect replacement for the Indian 2 and 3.2 diesel. But does not seem to be happening the way things are panning out.
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Old 28th September 2019, 22:04   #248
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Default re: Ford to end independent operations in India; will hold 49% in JV with Mahindra

I think downfall for Ford started in 2015 after the launch of Figo and Aspire. Old gen Figo was a very good car, specially the punchy 1.5 L Diesel motor and it sold in good numbers however the next-generation model completely killed Figo. It was poorly designed, looked so small from the outside and doesn't have any USP apart from the diesel motor and unfortunately for Ford around that time our market started moving from Diesel to Petrol and since the Petrol motor was sluggish, people looked for other better options in the market.

Aspire was also good car however the same Figo Diesel / Petrol story killed it along with Ford's decision to sell it in the cab market so early after the launch. Endeavour was also a great car but couldn't compete with the giant Fortuner and then EcoSport monopoly in the Compact SUV segment was killed by cars like host of launches like Breeza, Nexon, WR-V in 2016 & 2017. So in a Nutshell, all their cars being good and capable in their respective segment always played second or third fiddle. That killed it for Ford and ultimately led to their decision to exit India half heartedly.
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Old 28th September 2019, 22:35   #249
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Default re: Ford to end independent operations in India; will hold 49% in JV with Mahindra

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Originally Posted by VJ05 View Post
I think downfall for Ford started in 2015 after the launch of Figo and Aspire. Old gen Figo was a very good car, specially the punchy 1.5 L Diesel motor and it sold in good numbers however the next-generation model completely killed Figo. It was poorly designed, looked so small from the outside and doesn't have any USP apart from the diesel motor and unfortunately for Ford around that time our market started moving from Diesel to Petrol and since the Petrol motor was sluggish, people looked for other better options in the market.

Aspire was also good car however the same Figo Diesel / Petrol story killed it along with Ford's decision to sell it in the cab market so early after the launch. Endeavour was also a great car but couldn't compete with the giant Fortuner and then EcoSport monopoly in the Compact SUV segment was killed by cars like host of launches like Breeza, Nexon, WR-V in 2016 & 2017. So in a Nutshell, all their cars being good and capable in their respective segment always played second or third fiddle. That killed it for Ford and ultimately led to their decision to exit India half heartedly.
Old gen figo had a 1.4 diesel which was not powerful at all. Had decent drivability.
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Old 28th September 2019, 23:13   #250
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Default re: Ford to end independent operations in India; will hold 49% in JV with Mahindra

Quote:
Originally Posted by VJ05 View Post
I think downfall for Ford started in 2015 after the launch of Figo and Aspire. Old gen Figo was a very good car, specially the punchy 1.5 L Diesel motor and it sold in good numbers however the next-generation model completely killed Figo. It was poorly designed, looked so small from the outside and doesn't have any USP apart from the diesel motor and unfortunately for Ford around that time our market started moving from Diesel to Petrol and since the Petrol motor was sluggish, people looked for other better options in the market.
This is true! Ford models below Ecosport don't feel very solid at all, they are stronger than Maruti no doubt, overall build quality and paint are just average IMO.

That said, I would still buy them for their awesome engines, decent safety kits, sorted dynamics, VFM pricing and affordable maintenance.

Most of the USP don't seem to be tangible, hence Ford had hard time pushing them out of the showrooms. I bet no one could find an unhappy Aspire owner Especially the Diesel one.
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Old 1st October 2019, 17:08   #251
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Default re: Ford to end independent operations in India; will hold 49% in JV with Mahindra

Finally, here it is, the JV is signed between M&M and Ford, new entity is called Ardour Automotive Pvt Ltd.

All the assets of Ford India Private Limited(FIPL) will be transferred to the new entity.

M&M holds 51% of the JV while Ford Motor Company & its affiliates will hold 49%.

Source: ET Auto
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Old 1st October 2019, 17:12   #252
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Default re: Ford to end independent operations in India; will hold 49% in JV with Mahindra

Quote:
I am really delighted to share this news. This addresses any questions of Ford quitting India. We are now going to be able to bring in more products much faster to serve customers in India and emerging markets. Thank you for your continued support. Very exciting day.
Got above message from Anurag Mehrotra, Ford India MD/CEO on WhatsApp. This will be a sigh of relief for prospective buyers and owners. I am very happy and excited to look forward to this joint venture.
Attached Files
File Type: pdf Ford-Mahindra JV ToolKit - Press Release Ver Oct1.pdf (495.8 KB, 485 views)

Last edited by roby_dk : 1st October 2019 at 17:22. Reason: Added attachment
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Old 1st October 2019, 17:46   #253
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Default re: Ford to end independent operations in India; will hold 49% in JV with Mahindra

Key points IMHO -

Quote:
Mahindra and Ford will form a joint venture, with Mahindra owning a 51 percent controlling stake and
Ford owning a 49 percent stake. Ford will transfer its India operations to the joint venture, including
its personnel and assembly plants in Chennai and Sanand.
Ford will retain the Ford engine plant
operations in Sanand as well as the Global Business Services unit, Ford Credit and Ford Smart
Mobility.
Quote:
The
joint venture will be operationally managed by Mahindra
, and its governance will be equally composed
of representatives of Mahindra and Ford.
Quote:
Ford will continue to own the Ford brand, and its branded vehicles will be distributed through the
current Ford India dealer network.
Mahindra will continue to own the Mahindra brand and operate its
own independent dealer network in India.
Quote:
The joint venture expects to introduce three new utility vehicles under the Ford brand, beginning with
a new midsize sports utility vehicle that will have a common Mahindra product platform and
powertrain.
Quote:
Another area of focus for the joint venture will be electric vehicles. Ford and Mahindra will collaborate
to develop vehicles to support the growth of sustainable mobility across emerging markets.
Quote:
The joint venture will use the Ford brand distribution network in emerging markets to extend support
for export of Mahindra products, in addition to Ford branded vehicles.
Looks to me like Mahindra gains a lot more than Ford -

Mahindra gets -
1. 51% share in the new entity
2. Technical expertise, employees and facilities in Sanand and Chennai handed over on a platter.
3. Operational control.
4. Ford brand distribution networks in emerging markets.

Whereas Ford gets -

1. A future in India
2. 49% share in the new entity
3. Three new SUVs from Mahindra

Last edited by CrAzY dRiVeR : 1st October 2019 at 17:51.
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Old 1st October 2019, 18:22   #254
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Default re: Ford to end independent operations in India; will hold 49% in JV with Mahindra

Quote:
Originally Posted by CrAzY dRiVeR View Post
...

Looks to me like Mahindra gains a lot more than Ford -

Mahindra gets -
1. 51% share in the new entity
2. Technical expertise, employees and facilities in Sanand and Chennai handed over on a platter.
3. Operational control.
4. Ford brand distribution networks in emerging markets.

Whereas Ford gets -

1. A future in India
2. 49% share in the new entity
3. Three new SUVs from Mahindra

I think this fits in nicely with Ford's new International Markets Group (IMG) which covers over 100 markets. They must be looking at taking these JV platforms to the IMG markets.
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Old 1st October 2019, 19:04   #255
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Default re: Ford to end independent operations in India; will hold 49% in JV with Mahindra

Quote:
Originally Posted by fiat_tarun View Post
I think this fits in nicely with Ford's new International Markets Group (IMG) which covers over 100 markets. They must be looking at taking these JV platforms to the IMG markets.
I second you fiat_tarun, it could be just a start from India. Somehow, I see the same message from Ford's below tweet.

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