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Old 2nd January 2021, 13:23   #61
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Re: Ford - Mahindra call off their engagement; no JV happening!

IMPO, Let Mahindra sink or swim without others. It's an establishment with questionable decisions made in recent times but we don't need a international player to come in and change the dynamics. I have full confidence in the M&M group to bounce back. They are willing to take risks and that's that.
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Old 2nd January 2021, 13:39   #62
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Re: Ford - Mahindra call off their engagement; no JV happening!

This is indeed bad for Ford's operations in India. WOrdings of the press release does not inspire any confidence. I have been associated with Ford in the past and this is business-speak for saying that we do plan to get rid of India operations but do not yet know how!!
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Old 2nd January 2021, 15:03   #63
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Re: Ford - Mahindra call off their engagement; no JV happening!

Quote:
Originally Posted by arindambasu13 View Post

Especially since so many recent announcements from Ford about new products for the Indian market have flooded automotive news.

Timeline

1. The CEO announces multiple investments for India
2. Several cars are to be launched one after the other
3. The all-new Chevy Beat and sub 4m Beat sedan is seen extensively testing throughout the nation
4. Dealer sales staff receive the training plans
5. Market is made aware of a possible exit.
6. Denial, since many India-specific products are on the verge of being launched
7. Next day, GM announces winding up of India sales ( Re-iterates that the current plant will function and will manufacture for other markets)



8. GM announces closure of the plant
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Old 2nd January 2021, 17:21   #64
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Re: Ford - Mahindra call off their engagement; no JV happening!

I don't understand! What happens to this thing then? Has ford abandoned this project or have the gone for some kind of settlement? Or was it a fantasy to begin with?

https://www.team-bhp.com/forum/india...ost-ready.html (Scoop! Design of Ford’s XUV500-based SUV almost ready)

Ford - Mahindra call off their engagement; no JV happening!-screenshot_20210102171611_chrome.jpg
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Old 2nd January 2021, 17:39   #65
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Re: Ford - Mahindra call off their engagement; no JV happening!

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Originally Posted by Romeo_Mike View Post
I don't understand! What happens to this thing then? Has ford abandoned this project or have the gone for some kind of settlement? Or was it a fantasy to begin with?

https://www.team-bhp.com/forum/india...ost-ready.html (Scoop! Design of Ford’s XUV500-based SUV almost ready)

Attachment 2101728
As far as I know from inside sources the project is still alive and surprisingly not yet axed!! Probably because its in an advanced stage of development and have already invested huge amount of time and money on this.
But!! Since M&M is involved in this topic, anything can happen anytime

And No it wasn't a fantasy !

Last edited by Adam : 2nd January 2021 at 17:42.
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Old 2nd January 2021, 22:21   #66
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Re: Ford - Mahindra call off their engagement; no JV happening!

Quote:
Originally Posted by Romeo_Mike View Post
I don't understand! What happens to this thing then? Has ford abandoned this project or have the gone for some kind of settlement? Or was it a fantasy to begin with?

https://www.team-bhp.com/forum/india...ost-ready.html (Scoop! Design of Ford’s XUV500-based SUV almost ready)

Attachment 2101728
Read it somewhere (couldn’t find the source as I write this reply), Ford’s XUV500 based SUV project is very well alive, and should see the light somewhere in 1st half of 2022.

The December 20’s sales numbers for Ford looks disappointing, close to 1200 dispatches, with a YoY decline of about 38%. Now sure how will they survive independently with such low numbers , or it’s the exports which help them survive in India?

While Mahindra still has considerable command in the SUV space - riding on old workhorse Bolero, and the soon to expect refreshed Scorpio and the XUV500, the chugging will continue, and in 2021, we will see a lot of ups and downs for the 4th-5th slots between Tata (I don’t see Tara holding the 3rd rank for long) and Mahindra.


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Old 3rd January 2021, 04:32   #67
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Re: Ford - Mahindra call off their engagement; no JV happening!

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We all know that most of these companies came to India to benefit from the low manufacturing cost and not because India was a big market for them.
The problem is that these big companies screwed their home markets so badly that it started impacting low volume markets like us. Read GM.
Sorry man, I'm afraid your assumptions aren't right. Initially you said Ford India was profiting while Ford Motor Company was almost bankrupt. Which is what I responded to correct.

Now you say most companies came to India because of low-cost and not because India was a big market for them. That's not true again. Companies didn't come to India to set up export hubs. They have China, Thailand, East-EU or even Mexico for that. It doesn't make economic sense for them to deal with all the flip-flops and then export cars from India. Companies came to India to get a share of the car market in a fast growing developing country. But when their plans didn't work out they had to use the excess capacity for exports. Even with that Ford burn it's fingers because the Ecosport was thrashed abroad for poor build quality which is good by Indian expectations.

GM did not pull out of India after 2008 GFC. They left when they didn't have a plan for profitability and growth in India.

While it is true that the economic situation of the parent company played an important role, it is also true that their Indian subsidiaries didn't perform to expectations.

Quote:
Originally Posted by justwheels View Post
Indian market is a difficult market and I only meant that if Ford can take India seriously with the JV gone, we might see some good products from them. Else not very far that they wrap up like GM. Ecosport still sells healthily and endeavour has its fan following. Get some produccts in between and we can talk competition, else Bye Bye.
Of course, yes they can. Will they is the question?

The way Ford and GM handled their Australian plant closures and future is a very good example. Ford stopped the BS and played to their strengths which was to cull the Falcon brand and focus on UTEs and SUVs. They are doing pretty well.

GM on the other hand, put lipstick on a pig and got burnt. They tried to sell the Opel Insignia as the Holden Commodore which infuriated fans. Add a couple of ex-Daewoo nameplates and Chevrolet SUVs and eventually no one knew what the brand Holden meant anymore. GM killed Holden. End of story.
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Old 3rd January 2021, 05:16   #68
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Re: Ford - Mahindra call off their engagement; no JV happening!

This was not expected, considering that the initial transition had started. The integration of Ford spares with Mahindra database was initiated.
Now the big question for all. Will Ford exit India in the future? Let's wait and watch.
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Old 3rd January 2021, 05:32   #69
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Re: Ford - Mahindra call off their engagement; no JV happening!

I am of the opinion that the termination of the proposed JV is a precursor to Ford's exit from India. They talk about profitability and resource allocation in their press release. JV route would be the less riskier and less capital intensive decision than going solo. Maybe time to say goodbye.
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Old 3rd January 2021, 07:33   #70
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Re: Ford - Mahindra call off their engagement; no JV happening!

Theoretically and just theoretically speaking, it might make sense for Ford and Honda to look for a JV in India.
Looking at the product line-ups, Honda India’s strong suite is sedans and they do not have any B2 hatchback or a hot-selling CSUV/SUV to speak about. On the other hand, Ford has some neat offerings in Figo, EcoSport and Endeavour. Also if I am not wrong, Honda India does not have a turbo engine under their belt but Ford does. So they do complement each other in some sense.

However on practical front, things would be trickier. Honda itself is on a sticky wicket in India. Also, these two compete everywhere else in the world which would make it difficult to collaborate in just one country. There might be a 100 other reasons for this to not work like Arindam mentioned in one of the posts but there are places where these guys can definitely strengthen each other in India.
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Old 3rd January 2021, 10:53   #71
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Re: Ford - Mahindra call off their engagement; no JV happening!

Thanks to the Team-BHP fan (he prefers to remain anonymous) who sent this information in. Heartfelt gratitude for sharing it with other enthusiasts via this page!

Quote:
Dear GTO,

The W605 most probably will not be axed. That one is going to be a special child whose parents got divorced even before his birth.
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Old 3rd January 2021, 12:06   #72
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Re: Ford - Mahindra call off their engagement; no JV happening!

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Originally Posted by GTO View Post
Thanks to the Team-BHP fan (he prefers to remain anonymous) who sent this information in. Heartfelt gratitude for sharing it with other enthusiasts via this page!
Eeeks, unenviable position. To be brought up by a domestic cash strapped single parent while the other parent looks to relocate back home. Further, both parents actively looking for other matches.
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Old 3rd January 2021, 12:34   #73
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Re: Ford - Mahindra call off their engagement; no JV happening!

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Sorry man, I'm afraid your assumptions aren't right. Initially you said Ford India was profiting while Ford Motor Company was almost bankrupt. Which is what I responded to correct.
........

. End of story.
Clearly I was less informed, and thanks for clarifications. appreciate that.

I do believe that due to the size and structure of our market, unless an overseas player is very serious with India, stories like GM and Ford will continue, ofcourse the archaic laws of our country don't help at all. But while we often blame sub4m law as the main issue, looking at the sales of Seltos etc, a player can still have a good presence.

Ford was quite in the foray with ecosport, figo and endeavour and people vouch for the TDCI even today. But then, it just took ages for them to react to market changes. With the JV gone now, the real intentions will comeout soon. They may chose to keep India a low domestic volume and high export destination, or just wrap up and let others pounce on their share.

I believe China is a different market not just in size but value also. China has seen much larger per capita growth and sales of better and luxury vehicles is much higher. The harsh reality can be that we might be left with Koreans only. But again, that could just be my perception.
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Old 3rd January 2021, 15:44   #74
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Re: Ford - Mahindra call off their engagement; no JV happening!

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Thanks to the Team-BHP fan (he prefers to remain anonymous) who sent this information in. Heartfelt gratitude for sharing it with other enthusiasts via this page!
Logan story repeating again? Here, kid is staying with the other parent !!

Oh wait, there is another similar unfortunate child, Ashok Leyland Stile.
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Old 4th January 2021, 04:33   #75
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Re: Ford - Mahindra call off their engagement; no JV happening!

Ford India can get back in the game if they update their line up. They have the New Puma, Focus hatch/Focus Active and Escape. All very good cars and loaded to the brim with gizmos, which is what the market wants these days. The Focus is a sharp looking car too. They should atleast put these cars in the showrooms and assess their interest. This is what Daewoo did back in the 90's and it worked well for them.
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