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-   -   Ford to end independent operations in India; will hold 49% in JV with Mahindra (https://www.team-bhp.com/forum/indian-car-scene/208344-ford-end-independent-operations-india-will-hold-49-jv-mahindra-18.html)

What do you guys suggest current Ford owners do now?

I have a 17 month old Ecosport AT run 15k kms. Should I keep it? Should I sell it?

News from CNN Business
https://www.cnn.com/2019/10/01/busin...ure/index.html
The US carmaker will transfer most of its Indian business to a new joint venture controlled and managed by local rival Mahindra, it announced on Tuesday. Mahindra will own 51% of the joint venture and Ford the rest.

The joint venture should be operational by the middle of 2020. It will "develop, market and distribute" Ford vehicles in India and also sell Ford and Mahindra vehicles overseas, the company said. Ford will retain control of an engine manufacturing unit in India.

If Ford has appointed Mahindra to "develop, market and distribute Ford vehicles in India and also sell Ford and Mahindra vehicles overseas", then they would be serious of this JV, as a chunk of their profit comes from exports.

But in all reality, it's highly likely that the company appointed thus, gets complacent in improving anything with the bought brand.

Why would you think of selling it? It is not like Ford is packing up and leaving us high and dry. There are service centres and parts available and there is no news of them shutting down.
Just that there may be some changes with Mahindra in the picture which we have to wait and watch.

Your car purchase was an investment, no point of selling it and loosing money, buying another brand.

Looks to me like the JV is going to be spewing out Ford badged Mahindras. Honestly, I would have preferred it to be the other way around, even though Mahindra has made impressive progress during the last few years.

Mahindra certainly has more to gain from this arrangement. Any word on future sharing of dealer network? If yes, let's just hope this doesn't go the Tata-Fiat way for Ford.

https://www.team-bhp.com/forum/india...ml#post4272315

So it took them roughly 2 years/24 months to get from dilly-dallying about exploring-strategic-cooperation to forming a JV which will be operational at a roughly 3rd-year mark.

The typical timeframe for a company that isn't fully committed. In a similar timeframe, a Korean and Chinese company have launched their brand and a car each.

I hope Mahindra doesn't let down this JV like it's numerous other JV failures. I also hope Ford will provide full cooperation to Mahindra, unlike in their first JV in the 1990s.

I was/am highly pessimistic about this JV but considering the challenging times' Automakers face the world over, consolidation and partnerships are the pills for survival. Good luck to the JV.

More as seen in the presentation,







-JV will first produce a C-SUV, for both companies, but produced by Mahindra.

-Up next will be 2 products - 1 of which will be on the B-platform, produced at Ford's plant in Sanand or Chennai. There will be no joint-branding of any of these products

-Coming to the two companies' EV plans, there will be an EV based on the @FordIndia Aspire, but utilising an electric power train from Mahindra Elctrc. and produced at Ford's plant

-The JV will also venture in international markets by exporting Mahindra vehicles using Ford's network

Link

Thanks.

What does, "Likely debt transfer - Rs. 636 Cr. "mean?

Are the contribution numbers notional or for real? 1200 Crores is a lot of money.

All this makes me confused. Is there a simpler explanation for this ? Somehow I feel like Mahindra has acquired Ford's India business and all future ford india products will be rebranded Mahindra designs. If that is the case, then how is this beneficial for existing Ford customers ? For eg, what is the incentive for them to upgrade Endeavour when they know Alturas will be the most affected ? Or will there be a non compete, where they won't have competing products in the same segment. To me this looks like a soft exit itself.

In the long run it is very much possible.

Link

I wonder what would have happened if Ford et al had remained with Mahindra from the beginning itself?

Toyota and Honda still retain their Indian partners although they don't really play much of a part in strategy. Mahindra were the best with their relative depth of the auto industry ecosystem.

The only successful ditch and go venture has been Mercedes.

I think its a win for Mahindra in the long term. As an manufacturer they are not able to move further from where they are, owing to lack of expertise in many segments, especially the small cars. And they know it is next to impossible to do what Hyundai is doing in India, alone. So with Ford, they get access to small car platforms, like the one which aspire is using, and even potentially a small turbo petrol like the eco boost. Also, they get money and intelligence from Ford to develop their next gen XUV500, which basically takes huge financial burden off them. Lastly, Mahindra has the controlling stake, so you never know, they just might increase their stake in a few years.

And for Ford, its about being more efficient. They have been here for more than 25 years now and have nothing significant to show. They do not have the global financial might and clout that say VW has, so no point trying to go solo after all these years. They had to do something. And they have done it.

Ford Mahindra marriage might be good for the bride and the groom ( you decide who is what) but I am pretty sure the offsprings will not be a star. Can't even imagine Fords looking like KUVs on road having third class plastics and interiors and lots of rattles and niggles as marriage gift.

This is my first post after long hiatus! I wanted to vent out the frustration on how Ford does things and give up like this at the end. Having a nice portfolio of great driver oriented cars like Fiesta, Figo, Ecosport & Endeavour and still they failed. Be a Roman when you are in Rome. Think like Indian when you are in India. Ford is too big to really care to learn a thing or two from others. Look at Hyundai giving Maruti a run for their money, non stop at launching of new products and bringing in Kia as well in the mix in their attempt to increase their over all market share. Ford should have had at least two more small cars, another mid size suv and a MUV to have some decent numbers. Just 4 models can not bring enough monthly numbers. Mazda portfolio is an option at their disposal being their old shareholder.

As for as Mahindra & Ford relationship, they have failed once already. High probability of confusion in their product strategy as these two are completely different companies with different vision.