In a landmark decision, the two automotive giants, Mahindra and Ford have signed a total of 5 MOUs, to co-develop a series of vehicles for the Indian as well as other emerging markets. As part of this initiative, the two automakers will jointly develop new SUVs and a small electric vehicle in addition to several other initiatives. These memorandums of understanding are the final piece of the alliance which was announced by the two company’s back in September 2017.
Under this alliance, Mahindra and Ford are going to use their individual expertise in targeting the utility vehicle segment in India. The first product born out of this partnership is going to be the C-SUV. This midsize sports utility vehicle will use a Mahindra platform. The companies will target to achieve engineering and commercial efficiencies with this product. Furthermore, this vehicle will be sold independently by both companies as separate brands.
In addition to this, the Mahindra and Ford alliance will also develop a compact SUV. Not only this, but the collaboration will also result in the development of a small electric vehicle. Furthermore, the two companies will share their powertrain portfolios. This will include the supply of Mahindra platforms to Ford for extending the latter’s product range. Also, the two companies will work towards developing a suite of connected car solutions.
The collaboration between the two companies will leverage from two things. First is Ford’s global reach along with its expertise. The second being Mahindra’s large-scale operation and operating model in India.
Under this collaboration, the two companies will work together for a period of three years. In addition to the development of new vehicles, the partnership will explore more avenues. This includes an extended support for Mahindra in global emerging markets. Mahindra will benefit from Ford’s manufacturing and distribution network. Furthermore, the two companies will collaborate to address future mobility needs.
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