Fresh media reports reveal that Ford Motor Company is working on a joint-venture plan with Mahindra in India. The move will likely see the U.S. automaker cease independent operations in India and as per the deal, Ford will hold a 49 per cent stake, while Mahindra will hold a majority with 51 per cent stake. In other words, it can also be seen as a partial exit for Ford in the Indian market. The Dearborn-based company has invested more than $2 billion in India over a span of two decades. However, in terms of sales, the brand has been struggling in India, one of the fastest growing car markets, with a market share of just three per cent.
The report further indicates that the deal is expected to close within 90 days. Ford’s Indian unit will be transferring most of its current automotive business to the new entity, including its assets and the employees. It is worth noting that back in 2017, Ford and Mahindra had formed a strategic alliance to build a new entity together, which includes sports utility vehicles and electric variants. However, going by the reports, Ford is globally restructuring its businesses with an aim to save $11 billion over a period of next few years. Recently, Ford's Russian joint venture revealed that it will soon close its two assembly plants and an engine factory, thereby exiting the country’s passenger vehicle market in Russia.
Ford and Mahindra are yet to make an official statement in this regard and more details are likely to emerge over the next few days.
