Automaker Mahindra & Mahindra today signed an agreement with Ford to jointly develop a midsize sports utility vehicle (SUV) for India and other emerging markets. The agreement is part of an ongoing strategic collaboration between the two automakers.
The new midsize SUV will have a common Mahindra product platform and powertrain, thus driving engineering and commercial efficiencies. Ford and Mahindra Group had announced a strategic alliance in 2017, followed by an announcement on powertrain sharing and connected car solutions last year.
"Today’s announcement is another significant step in the collaboration between our two companies. Having identified several areas for joint development, both companies will continue to work together to develop products using common product platforms. This will reduce product development costs and gain economies of scale for both companies," Dr Pawan Goenka, Managing Director, M&M Ltd, said in a statement to stock exchanges.
Jim Farley, president of Ford New Businesses, Technology & Strategy, said Ford’s technological leadership combined with Mahindra’s successful operating model and product prowess will help the two automakers deliver a vehicle that will meet the expectations of customers in India as well as other emerging markets.
"The strategic alliance between the two companies is focused on leveraging the benefits of both companies -- Ford’s global reach and expertise and Mahindra’s scale and successful operating model in India," he said.
Teams from both companies continue to collaborate on all areas of mutual interest including electrification, distribution and product development. Earlier this fiscal year, the alliance signed an agreement with Mahindra Group to develop and supply a low-displacement petrol engine for use in Ford’s present and future vehicles, beginning in 2020. Mahindra and Ford also announced joint development of a telematics control unit.