Mahindra Group and Ford Motor Company on Thursday announced that the companies are signing an agreement to co-develop a mid-size sports utility vehicle (SUV).

The new mid-size sports utility vehicle (C-SUV) will have a common Mahindra product platform and powertrain, thus driving engineering and commercial efficiencies, the companies said in a statement.

“I am happy with the significant progress we have made and synergies we have created since the announcement of our strategic alliance with Ford in 2017. 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,” said Dr Pawan Goenka, Managing Director (MD), Mahindra & Mahindra (M&M) Ltd.

The agreement solidifies the ongoing strategic collaboration between the two companies with a focus on product development for India and emerging markets, the statement said.

“Ford’s technological leadership combined with Mahindra’s successful operating model and product prowess will surely help us deliver a vehicle that will meet the expectations of customers in India as well as other emerging markets,” said Jim Farley, president of Ford New Businesses, Technology & Strategy.

The statement further said that the new agreement reinforces the steady progress made since the announcement of the strategic alliance between the two companies in September 2017, followed by an announcement on powertrain sharing and connected car solutions in October 2018.

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.

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