INSUBCONTINENT EXCLUSIVE:
Mahindra are likely to sign a deal next week to form a joint venture in India, two sources told Reuters, in a move that will see the
Ford will transfer most of its automotive assets and employees in India to the new company, but the carmaker will retain an engine plant in
Sanand in the western state of Gujarat, according to the two sources.A Ford spokeswoman did not comment directly on the deal, but said the
company was engaged with Mahindra "to develop avenues of strategic cooperation that help us achieve commercial, manufacturing and business
efficiencies".Mahindra did not respond to a request for comment.By shifting to a joint venture, Ford is changing its decades-old India
strategy focused on running an independent operation
billion over the next few years.Ford's two manufacturing plants - one in Chennai in southern India and the other in Sanand which was
inaugurated in 2015 - will be moved to the new joint venture, but Ford will keep the engine plant at Sanand
Together, they have a maximum annual manufacturing capacity of 440,000 vehicles.Ford-brand cars will continue to be built and sold in India
and exported by the new company, one of the sources said.Over two decades, Dearborn, Michigan-based Ford invested more than $2 billion in
the sources.In India, currently, Ford manufactures and sells its cars via its wholly owned subsidiary
In 2017 it formed a strategic alliance with Mahindra under which, among other things, they will develop new cars together, including SUVs
and electric variants.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
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