Mahindra Group and Ford Motor Company have decided to jointly develop new SUVs, and a small electric vehicle as part of their partnership that has been formalised with multiple pacts.

The two companies signed five new memoranda of understanding (MoUs) to strengthen their strategic alliance and accelerate the development of vehicles for India and emerging markets.

“Today’s announcement is the next step in the collaboration between Mahindra and Ford,” said Dr Pawan Goenka, Managing Director, Mahindra & Mahindra Ltd.

The MoUs, which are non-binding, mark the progress made by the two companies since announcing their alliance in September 2017, according to a statement.

Both will leverage their strengths in the utility vehicle space to co-develop a mid-size sports utility vehicle (C-SUV).

Built on the Mahindra platform, the new SUV will drive engineering and commercial efficiencies and will be sold independently by both companies as separate brands.

Mahindra and Ford agreed to evaluate co-development of a compact SUV and electric vehicle, along with sharing powertrain portfolios, including the supply of Mahindra powertrains to extend Ford’s product range.

Key focus areas

They also announced plans to co-develop a suite of connected car solutions for consumers.

“Ford is committed to offering the best vehicles, technologies and services that fit the lifestyles and preferences of Indian consumers. With utility vehicles and electrification as key focus areas, we are glad to see the progress our two companies have made,” said Jim Farley, Ford Executive Vice-President and President of Global Markets.

Global reach

The strategic alliance between the two companies continues to focus on leveraging the benefits of Ford’s global reach and expertise and Mahindra’s scale in India and its successful operating model.

Teams from both companies will continue to work together, for a period of up to three years, to develop further avenues of strategic co-operation and that will include extension of support for Mahindra in global emerging markets, including Ford’s manufacturing and distribution network as also to address future mobility needs.

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