Mahindra Ford tie-up could help save more than Rs 7,000 crores

Mahindra will get to use Ford's future ready platforms, while Ford will get to use Mahindra's network in India.

Mahindra and Ford signed a MoU back in September 2017. Not much details have been revealed of the tie-up. At that time, the two manufacturers said that they will jointly develop connected vehicle solutions which will be launched on both Mahindra and Ford cars.

Other point that was revealed, was that Mahindra will supply BS6 compliant petrol engines to Ford, for their current as well as future cars in India. Apart from this, not much details had been revealed.

Mahindra XUV300 electric variant has already been confirmed for 2020 launch.

Economic Times report from earlier today, reveals that the duo are closing in on finalizing the partnership. Official statement and details are to be announced in a month’s time. Over the nest 3 – 5 years, Ford and Mahindra will collaborate / share 3 vehicle platforms, engines, electric vehicles and connected solutions.

Ford is on a global cost-saving plan, which will help them save $25.5 billion. Of this, tie-up with Mahindra will play a role as well. As per the ET report, the partnership will potentially help savings of about $ 500 million (Rs 3,500 crores) to over $1 billion (Rs 7,000 crores).

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Negotiations on the C segment SUVs (Tata Harrier rival) have concluded, while discussions on B segment SUV and electric vehicle are progressing well. Two SUVs are expected to be launched in the C segment, which are codenamed W601 and W605 internally. Manufacturing will happen at Mahindra’s plant in Chakan near Pune. Sourcing for the same has already started.

Ford in return, will provide Mahindra with their B segment monocoque architecture. This will play a huge role for Mahindra’s electric vehicle future. Speaking to ET, Dr Pawan Goenka said, “So when we combine the two, I think Mahindra and Ford will benefit immensely — our cost of hardware will come down and Ford will get the right product for emerging markets. It’s a clear win-win for both.”

Ford will also be using Mahindra’s network in India, especially in the rural areas. As a trial run, Ford is currently selling their cars like Figo, Aspire, EcoSport via 15 of Mahindra dealerships. If all works as per plan, more dealers will be added to the list.

Source Economic Times