NEW DELHI: US auto major Ford is all set to end its independent run in the Indian market as it has announced transferring its local operations, including its personnel and assembly plants in Chennai and Sanand, to a joint venture (JV) in which controlling stake will be owned by home-grown auto major Mahindra and Mahindra.
Struggling to make a big impact despite being operational in the country for over two decades, Ford was rumoured to exit the Indian market.
However, visibly it will continue to have presence and won’t exit the market like General Motors, which stopped selling Chevrolet models in 2017.
Ford will continue to own its brands and its vehicles will be distributed through the current dealership network.
According to the two firms, the JV, valued at Rs 1,925 crore, will develop, market and distribute Ford vehicles in India.
Mahindra will own 51 per cent controlling stake in it, while Ford would have the remaining 49 per cent stake.
“Our combined strengths — Mahindra’s expertise in value-focused engineering and its successful operating model, and Ford’s technical expertise, global reach and access to future technology — are a potent recipe for success,” said Anand Mahindra, chairman, Mahindra Group.
Ford will take $800-$900 million impairment charge related to value of its India assets in the third quarter.