Mahindra and Ford India will be co-developing 9 SUVs starting 2020 with combined investment of over $600 million.
Mahindra and Ford are preparing a big SUV portfolio in the near future with their new tie-up. Among the development of nine SUVs, six models will be rebadged and shared by both the companies. While three models will be made exclusively for Ford and used for both Indian and export markets.
Majority of the investment in developing the vehicle architecture and engine will be done by Mahindra. The Indian carmaker will also be handling the production of SUVs. Ford India will take out nearly $200 million to change the design and body parts of the vehicles to avoid cannibalism, apart from its own investment.
While the capital investment from Ford is less, it has been revealed that Mahindra may use one of the under-utilised manufacturing plants of Ford. This partnership is likely to bring down the production cost for both carmakers.
Mahindra-Ford Tie Up
– Nine SUVs will be developed, three of these SUVs will be made exclusively for Ford
– Majority of the investment will be done by Mahindra
– Ford will take out $200 million to change designs and body parts to avoid cannibalism
Source- FinancialExpress.com