Ford has devised a new roadmap with a massive investment of 11 billion USD over the next three to five years and it needs increased profitability to push ahead
Mahindra and Ford have indulged in a partnership holding significance for both the auto giants on a long term. The idea behind the association is that Ford will utilise Mahindra’s expertise in India to streamline its operations by increasing local content on its vehicles and improve the brand’s footprint.
In the mutually beneficial tie-up, Mahindra will take advantage of Ford’s global reach to consolidate its overseas market sales. As part of the strategy, both the companies will leverage each other’s strengthens in developmental and technological scheme of things for the betterment of future.
Ford has devised a new roadmap with a massive investment of 11 billion USD over the next three to five years and it needs increased profitability to push ahead in the developments regarding autonomous and zero-emission technologies. Ford is wary of the immense potential in partnership with Mahindra and it appears to have been evaluating several opportunities.
A recent report emerged on Reuters said conversations regarding product sharing have begun with M&M. It includes using the Indian brand as a benchmark to slash down supplier costs as we have previously mentioned. It should be noted that Mahindra and Ford had already confirmed a midsize SUV in the works but no other substantial information related to it was known.
The first vehicle to be spawn out of the partnership is due in 2020 and it could be the midsize SUV being developed from a joint architecture reportedly. Ford’s Chief Executive Officer, James Hackett, has stated the relationship with Mahindra as well as Volkswagen in commercial business is heading on a right path and holds a lot of promise.
The alliance with Mahindra will help Ford to reduce engineering and purchase costs due to the product sharing deals. Ford is phasing out sedans from its Stateside lineup and has brought down the number of platforms in a hope to concentrate more on the EV front over the coming years and nearly double its global pre-tax profit margin to 8 percent by 2020.