Mahindra Group and Ford Motor Company have signed a memorandum of understanding, under which both the companies will be working together leveraging their mutual strengths. Teams from both companies will collaborate and work together for a period of up to three years. Any further strategic cooperation between the two companies will be decided at the end of that period.
The areas of potential cooperation include:
· Mobility programs
· Connected vehicle projects
· Electrification
· Product development
· Sourcing and commercial efficiencies
· Distribution within India; improving Ford’s reach within India
· Global emerging markets; improving Mahindra’s reach outside of India
Mahindra has got scale and a successful operating model in India. The company is looking to expand its global presence and has acquired a majority stake in Ssangyong Motor Company in Korea, it has also got investments in ridesharing platforms in the USA. Ford enjoys global reach and after entering India has become one of the largest exporters of cars from the country. The collaboration is likely to benefit both the companies improving Ford’s reach within India and Mahindra’s reach outside of India. The collaboration also underlines the fact that accelerated rise of new technologies and new models of urban shared mobility have forced the companies to collaborate even as they compete to avail the maximum of the opportunities.