Mahindra group and Ford Motor Co will jointly develop new SUVs and a small electric vehicle as part of several initiatives to take forward their collaboration pact signed last year.
Ford and Mahindra sign five new MoUs in Chennai [L-R] Jim Farley, Ford executive vice president and president of Global Markets, and Peter Fleet, Group vice president & president, Ford Asia Pacific – with – Rajan Wadhera, president, automotive sector and Dr Pawan Goenka, Managing Director, Mahindra and Mahindra Ltd.
The two companies said they have signed five new memoranda of understanding that further strengthen their strategic alliance and accelerate the development of key products for consumers in India and emerging markets.
Under the initiatives, Mahindra and Ford will leverage their strengths in the utility vehicle space to co-develop a midsize sports utility vehicle (C-SUV), the companies said in a joint statement.
The SUV will be built on the Mahindra platform and will be sold independently by both companies as separate brands, it added.
"Mahindra and Ford also agreed to evaluate co-development of a compact SUV and electric vehicle, along with sharing powertrain portfolios, including the supply of Mahindra powertrains to extend Ford's product range," it added.
The MoUs, which are non-binding, mark the progress made by the two companies since announcing their alliance in September 2017, the statement said.
Commenting on the development, M&M Managing Director Pawan Goenka said, "Both teams are working together on joint development areas in keeping with industry requirements and leveraging mutual strengths."
Ford Executive Vice-President and President of Global Markets, Jim Farley, said, "With utility vehicles and electrification as key focus areas, we are glad to see the progress our two companies have made."
Listening to customers and incorporating their future needs is the core premise of this collaboration, he added.
The companies further said with an aim to generate synergies and improve efficiencies with the new initiatives, their strategic alliance continues to focus on leveraging the benefits of Ford's global reach and expertise and Mahindra's scale in India and its successful operating model.
Teams from both companies will continue to collaborate and work together, for a period of up to three years, to develop further avenues of strategic cooperation such as extending support for Mahindra in global emerging markets, including Ford's manufacturing and distribution network and collaborate to address future mobility needs.
In September last year, M&M and Ford Motor Company had inked a pact to explore a strategic alliance covering areas like product development, electric vehicles and distribution in India and abroad.
The two companies had a 50:50 joint venture -- Mahindra Ford India Ltd -- in the mid-'90s when Ford re-entered India.