If you can’t do it alone, do it together! This seems to be the mantra that many auto manufacturers are living by today, especially when they are operating in an open global market. We have already seen many manufacturers joining hands or working together in the past to help benefit each other in many different ways.
Following a similar business strategy, it looks like Mahindra and Ford are in talks to start a partnership where both manufacturers can help out each other. The Mahindra Group and the Ford Motor Company have officially agreed to explore a strategic alliance, designed to leverage the benefits of Ford’s global reach and expertise, and Mahindra’s scale in India and successful operating model.
According to the agreement, teams from both the companies will work together for a period of three years. If any of their collaborated efforts prove fruitful, then both companies will decide whether or not they wish to continue their partnership after this period.
The two teams will work on mobility programs, connected vehicle projects, electrification, product development and sourcing and commercial efficiencies. Ford will also hope to improve its distribution within India and improve their reach within India. Mahindra on the other hand will hope to benefit by improving their reach outside of India and enter more emerging global markets.
“Ford is committed to India and this alliance can help us deliver the best vehicles and services to customers while profitably growing in the world’s fifth largest vehicle market,” said Jim Farley, Ford executive vice president and president of Global Markets. “Our two companies have a long history of cooperation and mutual respect. The memorandum of understanding we have signed today with Mahindra will allow us to work together to take advantage of the changes coming in the auto industry. The enormous growth potential in the utility market and the growing importance of mobility and affordable battery electric vehicles are all aligned with our strategic priorities.”