Updated: October 2, 2019 3:23:14 am
Mahindra & Mahindra (M&M) and Ford Motor Company have signed an agreement to create a joint venture that will develop, market and distribute Ford brand vehicles in India and Ford brand and Mahindra brand vehicles in high-growth emerging markets around the world.
Mahindra and Ford will form a joint venture, with M&M owning a 51 per cent controlling stake. Ford will transfer its India operations to the joint venture, including its personnel and assembly plants in Chennai and Sanand. Ford will retain the Ford engine plant operations in Sanand as well as the Global Business Services unit, Ford Credit and Ford Smart Mobility.
Valued at Rs 1,925 crore ($275 million), the joint venture is is expected be operational by mid-2020, subject to regulatory approvals. The joint venture will be operationally managed by Mahindra, and its governance will be equally composed of representatives of Mahindra and Ford.
Though Ford started Indian operations in 1995, the company struggled to capture a decent share in the automobile market.
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