Ford creates a joint venture with Indian Mahindra in the amount of $ 275 million

Ford creates a joint venture with Indian Mahindra in the amount of $ 275 million

October 2, 2019 0 By autotimesnews

Creating a joint venture will help brands increase their sales. Moreover, such an alliance can be a good example of mutually beneficial cooperation with other brands in developing car markets.

Ford and Indian Mahindra have announced a joint venture in India. Under this deal, Ford will transfer 51% of its operations in India to a joint venture, including its specialists and assembly plants in Chennai and Sananda. At the same time, the Americans reserve control over the motor plant in Sananda, as well as continue to monitor lending and the local technology division of Smart Mobility. The new joint venture will produce cars with the Ford and Mahindra logos for the markets of developing countries.

According to CNN, the creation of a joint venture between these automakers occurred against the backdrop of serious competition from other brands. So, according to the results of August, Ford’s share in all automotive sales in India could not rise above three percent. Mahindra was doing a little better – seven percent. But the Indian-Japanese joint venture Maruti Suzuki, this result is much higher – 47%.

The amount of investment in the project will be $ 275 million