Ford and Mahindra have signed five agreements which will see the companies work together to launch a new vehicle for emerging markets such as India.
Designed to “accelerate the development of key products for consumers,” the agreements will pave the way for a jointly-developed midsize SUV which will be built on a Mahindra platform. The companies aren’t saying much about the model but each automaker will receive their own version of the SUV.
Ford and Mahindra have also agreed to look into the possibility of jointly-developing an electric vehicle and a compact SUV. The companies are also considering sharing powertrain options and the automakers hinted this may involve Mahindra engines coming to an assortment of Ford vehicles.
Besides the product agreements, the companies work together to create a “suite of connected car solutions for consumers.” This is an area of particular interest for Ford as the company has previously announced 90 percent of their new global vehicles will have some form of connectivity by 2020.
The decision to work together isn’t terribly surprising as the companies acknowledge the partnership will cut costs and leverage each company’s strengths. Ford notes Mahindra will benefit from their “global reach and expertise” while they will take advantage of Mahindra’s “scale in India and its successful operating model.”
Speaking of Ford’s reach, the automaker will provide Mahindra with access to its vast manufacturing and distribution network to provide support for the company in global markets.
In a statement, Mahindra managing director Dr Pawan Goenka said “Today’s announcement is the next step in the collaboration between Mahindra and Ford. Both teams are working together on joint development areas in keeping with industry requirements and leveraging mutual strengths. We are excited about the synergies unveiled through this collaboration and the potential opportunities it will bring.”