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Mahindra, Ford Joint Venture On Track Despite COVID Crisis

Rajesh Jejurikar, Executive Director, Auto and Farm Sector, at Mahindra has told carandbike that while the COVID-19 crisis has delayed the process a bit, the work on the Mahindra-Ford JV hasn't stopped and it's very much on track.

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Mahindra and Ford's new joint venture will sell Ford branded products in India and other export markets

Highlights

  • The new joint venture between Ford and Mahindra was set to launch in 2020
  • Mahindra will have 51% stake in the new company, while Ford will have 49%
  • The joint venture will also see the brands co-develop new products

The Covid-19 pandemic has taken a major toll on the country, and the auto industry has not been impervious to this crisis. Several automakers have had to rejig their product strategies for 2020, in terms of launches and introduction of new technologies. In fact, Mahindra and Ford Motor Company were also supposed to launch their new joint venture company this year, and while the process seems to have been delayed a bit, the company has told carandbike that the work hasn't stopped and it's very much on track.

Also Read: Mahindra & Ford Announce New Joint Venture

Speaking about the joint venture, on the latest episode of Freewheeling With SVP, Rajesh Jejurikar, Executive Director, Auto and Farm Sector, Mahindra & Mahindra said, "We are not ready with a date, because it all depends on the pace at which government office open, and all the formalities are completed so, we just have to wait and watch. But no work is stopping, because all the product platform work was already covered with agreements enabling that to happen. They were not dependent on the joint venture. So, all the platform sharing agreement were already signed way before the joint venture, so all that work is on."

In addition to the existing platforms, work on new platforms, which were supposed to be developed by the joint venture company, are also on track. As per the agreement signed by the two companies, in the new joint venture, Mahindra will own the controlling stake of 51 per cent, while Ford will own 49 per cent. The companies will have 50-50 representation on the board, with a Mahindra elected Chairman.

Also Read: Mahindra-Ford Joint Venture: 10 Things You Need To Know

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Mahindra Group Chairman Anand Mahindra with MD Pawan Goenka and Jim Farley, President, New Business, Ford Motor Company at the announcement of the JV

Also Read: Exclusive: New-Gen Mahindra Thar To Be Launched Post October

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Under the new partnership, Mahindra will make products that can be used by the new JV company for Ford ecosystem. The joint venture will also see the brands co-develop new products, including 3 new UVs under the Ford brand starting with a new mid-size SUV that will have a common platform and powertrain shared by the companies. The new company also plans to export India-made models to other markets, and talking about that Jejurikar added, "One part for business, which is the joint venture with Ford, you would want to export aggressively, and create products which can go under Ford badge."

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