Mahindra and Mahindra (M&M) and Ford Motor Company on Monday announced plans to join hands again, after nearly two decades of parting ways, as they prepare to meet challenges arising out of new technologies and tap opportunities in a fast-changing environment. The 2 firms inked a pact to explore a strategic alliance covering areas like product development, electric vehicles and distribution in India and abroad.
Under the pact, teams from both companies will collaborate and work together for up to 3 years to leverage benefits of Ford's global reach and expertise and Mahindra's scale in India, the two companies said in a statement. “Any further strategic cooperation between the two companies will be decided at the end of that period,” they added. The companies said their alliance would look at areas of potential cooperation including, ‘mobility programmes, connected vehicle projects, electrification and product development’. Besides, it will explore sourcing and commercial efficiencies, distribution within India, improving Ford's reach within India, global emerging markets, improving Mahindra's reach outside of India, the statement added.
Mahindra and Mahindra Managing Director Pawan Goenka said: “Today's announcement builds on the foundation laid through our past partnership with Ford and will open opportunities for both of us.”
The two companies had a 50:50 joint venture -- Mahindra Ford India ltd -- in the mid-90s when Ford re-entered India. Ford later increased its stake in the JV and the Indian partner exited from it. Goenka said accelerated rise of new technologies, sustainability policies and new models of urban shared mobility have triggered changes in the automotive industry globally.