Ford Motor Co. is close to striking a deal with Mahindra & Mahindra in order to create a joint-venture in India. This will result in the wrapping up of the US automaker’s independent operations in India.
The current assets and employees of the US carmaker’s India unit will move to the new entity. With more than 376 sales and service stations across 209 cities in India, Ford will add about 14,000 employees and two plants to Mahindra & Mahindra’s set up.
As per the new deal, Ford will establish a new unit in the country with a 49 percent stake while India-based Mahindra and Mahindra will own 51 percent of the venture, according to a report by Reuters.
According to Ford, these companies will continue to work in tandem with each other in order “to develop avenues of strategic cooperation that help us achieve commercial, manufacturing and business efficiencies.”
At present, Ford makes and sells cars throughout the country through its completely-owned subsidiary. In 2017, it also created an alliance with Mahindra in order to build new cars together including SUVs and electric cars as well.
In a press statement, Mahindra said the two companies were “working together in identified areas” after a 2017 partnership and “will announce further definitive agreements as we progress on some of the other areas.”